Source: People’s Republic of China – State Council News
BEIJING, May 13 — China and Brazil on Tuesday issued a joint statement on strengthening the building of a China-Brazil community with a shared future for a more just world and a more sustainable planet and jointly upholding multilateralism, and a joint statement on the Ukraine crisis.
Source: People’s Republic of China – State Council News
Full Text: President Xi’s keynote speech at the opening ceremony of the fourth ministerial meeting of the China-CELAC Forum
BEIJING, May 13 — Chinese President Xi Jinping on Tuesday delivered a keynote speech at the opening ceremony of the fourth ministerial meeting of the China-CELAC (the Community of Latin American and Caribbean States) Forum.
The following is the full text of the speech:
Writing a New Chapter in Building
A China-LAC Community with a Shared Future
Keynote Address by H.E. Xi Jinping
President of the People’s Republic of China
At the Opening Ceremony
Of the Fourth Ministerial Meeting of the China-CELAC Forum
Beijing, May 13, 2025
Your Excellency President Gustavo Petro,
Your Excellency President Luiz Inácio Lula da Silva,
Your Excellency President Gabriel Boric,
Your Excellency President Dilma Rousseff,
Delegates of CELAC Member States,
Ladies and Gentlemen,
Friends,
It gives me great pleasure to meet so many old and new friends from Latin American and Caribbean (LAC) countries in Beijing. On behalf of the Chinese government and people, I extend a warm welcome to you all.
In 2015, LAC delegates and I attended the opening ceremony of the First Ministerial Meeting of the China-CELAC Forum in Beijing, which marked the launch of the China-CELAC Forum. Ten years on, with dedicated nurturing of both sides, the Forum has grown from a tender sapling into a towering tree. This fills me with deep pride and satisfaction.
Although China and the LAC region are geographically distant, the bonds of our friendship stretch back through centuries. As early as in the 16th century, Nao de China, or “Ships of China,” laden with friendship, shuttled across the Pacific, marking the dawn of interactions and exchanges between China and the LAC region. From the 1960s onward, as New China established diplomatic ties with some LAC countries, exchanges and cooperation between the two sides became closer and closer. Since the turn of the century and in particular in recent years, China and LAC countries have ushered in a historic era of building a shared future.
We stand shoulder to shoulder and support each other. China appreciates the long-standing commitment of LAC countries that have diplomatic ties with China to the one-China principle. China firmly supports LAC countries in pursuing development paths suited to their national conditions, safeguarding sovereignty and independence, and opposing external interference. In the 1960s, mass rallies and demonstrations took place across China in support of the Panamanian people’s rightful claim to sovereignty over the Panama Canal. In the 1970s, during the Latin American campaign for 200-nautical-mile maritime rights, China voiced its resolute and unequivocal support for the legitimate demands of developing countries. For 32 consecutive times since 1992, China has consistently voted for the United Nations (U.N.) General Assembly resolutions calling for an end to the U.S. embargo against Cuba.
We ride the tide of progress together to pursue win-win cooperation. Embracing the trend of economic globalization, China and LAC countries have deepened cooperation in trade, investment, finance, science and technology, infrastructure, and many other fields. Under the framework of high-quality Belt and Road cooperation, the two sides have implemented more than 200 infrastructure projects, creating over a million jobs. The China-LAC satellite cooperation program has set a model for high-tech South-South cooperation. The inauguration of Chancay Port in Peru has established a new land-and-sea connectivity link between Asia and Latin America. China has signed free trade agreements with Chile, Peru, Costa Rica, Ecuador, and Nicaragua. Last year, trade between China and LAC countries exceeded US$500 billion for the first time, an increase of over 40 times from the beginning of this century.
We unite in tough times to conquer challenges through mutual support. China and LAC countries have collaborated on disaster prevention, mitigation and relief and on joint response to hurricanes, earthquakes and other natural disasters. Since 1993, China has dispatched 38 medical teams to the Caribbean. When the pandemic of the century struck, China was among the first to offer assistance to LAC countries, providing over 300 million doses of vaccines and nearly 40 million units of medical supplies and equipment, and sending multiple teams of medical experts. All this helped protect the lives of hundreds of millions across the region.
We uphold solidarity and coordination and rise to global challenges with resolve. Together, China and LAC countries champion true multilateralism, uphold international fairness and justice, advance global governance reform, and promote multipolarization of the world and greater democracy in international relations. We have worked together to address global challenges like climate change, and advance progress in global biodiversity governance. China and Brazil jointly issued a six-point common understanding on the political settlement of the Ukraine crisis, which has been endorsed by more than 110 countries, contributing our wisdom and strength to resolving international hotspot issues.
Facts have shown that China and LAC countries are advancing hand in hand as a community with a shared future. This community of ours is founded upon equality, powered by mutual benefit and win-win, invigorated by openness and inclusiveness, and dedicated to the people’s well-being. It exhibits enduring vitality and holds immense promise.
Distinguished Delegates,
Friends,
The century-defining transformation is accelerating across the globe, with multiple risks compounding one another. Such developments make unity and cooperation among nations indispensable for safeguarding global peace and stability and for promoting global development and prosperity. There are no winners in tariff wars or trade wars. Bullying or hegemonism only leads to self-isolation. China and LAC countries are important members of the Global South. Independence and autonomy are our glorious tradition. Development and revitalization are our inherent right. And fairness and justice are our common pursuit. In the face of seething undercurrents of geopolitical and bloc confrontation and the surging tide of unilateralism and protectionism, China stands ready to join hands with our LAC partners to launch five programs that advance our shared development and revitalization, and contribute to a China-LAC community with a shared future.
The first is Solidarity Program. China will work with LAC countries to support each other on issues bearing on our respective core interests and major concerns. We must enhance exchanges in all fields, and strengthen communication and coordination on major international and regional issues. In the next three years, to facilitate our exchanges on national governance best practices, China will invite 300 members from political parties of CELAC member states every year to visit China. China supports the efforts by LAC countries in increasing their influence on the multilateral stage. We will work with LAC countries to firmly safeguard the international system with the U.N. at its core and the international order underpinned by international law, and to speak with one voice in international and regional affairs.
The second is Development Program. China will work with LAC countries to implement the Global Development Initiative. We will resolutely uphold the multilateral trading system, ensure stable, unimpeded global industrial and supply chains, and promote an international environment of openness and cooperation. We should foster greater synergy between our development strategies, expand high-quality Belt and Road cooperation, and bolster cooperation in traditional areas such as infrastructure, agriculture and food, and energy and minerals. We should expand cooperation in emerging areas such as clean energy, 5G telecommunications, the digital economy and artificial intelligence, and carry out the China-LAC Science and Technology Partnership. China will increase imports of quality products from LAC countries, and encourage its enterprises to expand investment in the LAC region. We will provide a RMB66 billion yuan credit line to support LAC countries’ development.
The third is Civilization Program. China will work with LAC countries to implement the Global Civilization Initiative. We should uphold the vision of equality, mutual learning, dialogue, and inclusiveness between civilizations, and champion humanity’s common values of peace, development, fairness, justice, democracy, and freedom. We should enhance China-LAC civilizational exchanges and mutual learning, including through a conference on China-LAC inter-civilizational dialogue. We should deepen cultural and artistic exchanges and cooperation, and hold the Latin American and Caribbean Arts Season. We should strengthen exchanges and cooperation in cultural heritage fields such as joint archaeological projects, conservation and restoration of ancient and historic sites, and museum exhibitions. We should also carry out collaborative studies of ancient civilizations and enhance cooperation to combat illicit trafficking of cultural property.
The fourth is Peace Program. China will work with LAC countries to implement the Global Security Initiative. China supports the Proclamation of Latin America and the Caribbean as a Zone of Peace and the Declaration of Member States of the Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean. The two sides should cooperate more closely in disaster governance, cybersecurity, counterterrorism, anti-corruption, narcotics control and combating transnational organized crime so as to safeguard security and stability in the region. China will organize law enforcement training programs tailored to the needs of CELAC member states, and do our best to provide equipment assistance.
The fifth is People-to-People Connectivity Program. In the next three years, China will provide CELAC member states with 3,500 government scholarships, 10,000 training opportunities in China, 500 International Chinese Language Teachers Scholarships, 300 training opportunities for poverty reduction professionals, and 1,000 funded placements through the Chinese Bridge program. We will initiate 300 “small and beautiful” livelihood projects, actively promote vocational education cooperation programs such as Luban Workshop, and support CELAC member states in developing Chinese language education. We will also launch an exhibition of Chinese films and TV programs under The Bond, and work with LAC countries to translate and introduce 10 premium TV dramas and audiovisual programs annually to each other. China will host the China-LAC tourism dialogue with LAC countries. To facilitate friendly exchanges, China has decided to implement a visa exemption for five LAC countries as the first step, and will expand this policy coverage at proper times.
Distinguished Delegates,
Friends,
As an 11th-century Chinese poet wrote, “Life’s greatest joy comes from finding kindred spirits.” Latin America has a similar proverb which goes, “The one who has a friend has a treasure.” No matter how the world changes, China will always stand by LAC countries as a good friend and a good partner. Let us march forward together on our paths toward modernization, working together to write a new chapter in building a China-LAC community with a shared future.
Source: People’s Republic of China – State Council News
BEIJING, May 13 — Chinese President Xi Jinping on Tuesday announced the launch of five programs to advance shared development and revitalization with Latin American and Caribbean (LAC) countries.
The five programs, ranging from solidarity, development and civilization to peace and people-to-people connectivity, were announced by Xi when delivering a keynote speech at the opening ceremony of the fourth ministerial meeting of the China-CELAC (the Community of Latin American and Caribbean States) Forum in Beijing.
In 2015, Xi and LAC delegates attended the opening ceremony of the first ministerial meeting of the China-CELAC Forum in Beijing, which marked the launch of the forum.
On Solidarity Program, Xi said China is willing to strengthen solidarity with LAC countries and continue to support each other on issues concerning their core interests and major concerns, to firmly safeguard the international system with the U.N. at its core and the international order underpinned by international law, and to speak with one voice in international and regional affairs.
In the next three years, China will invite 300 members from political parties of CELAC member states every year to visit China to facilitate exchanges on national governance best practices, Xi said.
On Development Program, China is willing to work with LAC countries to implement the Global Development Initiative, resolutely uphold the multilateral trading system, ensure stable, unimpeded global industrial and supply chains, and promote an international environment of openness and cooperation, Xi said.
Noting that the two sides should foster greater synergy between their development strategies and expand high-quality Belt and Road cooperation, Xi said China will import more quality products from LAC countries and encourage Chinese enterprises to expand their investment in the region.
On Civilization Program, Xi called for joint implementation of the Global Civilization Initiative. He said both sides should uphold the vision of equality, mutual learning, dialogue, and inclusiveness between civilizations, champion humanity’s common values of peace, development, fairness, justice, democracy and freedom, and enhance China-LAC civilizational exchanges and mutual learning, including through a conference on China-LAC inter-civilizational dialogue.
On Peace Program, Xi called for joint implementation of the Global Security Initiative. He said both sides should cooperate more closely in disaster governance, cybersecurity, counterterrorism, anti-corruption, narcotics control and combating transnational organized crime so as to safeguard security and stability in the region.
On People-to-People Connectivity Program, Xi said in the next three years, China will provide CELAC member states with 3,500 government scholarships, 10,000 training opportunities in China, 500 International Chinese Language Teachers Scholarships, 300 training opportunities for poverty reduction professionals, and 1,000 funded placements through the Chinese Bridge program, initiate 300 “small and beautiful” livelihood projects, and support CELAC member states in developing Chinese language education.
China has decided to offer a visa-free policy to five LAC countries, and will expand the policy to cover more regional countries in due course, Xi said.
Gustavo Petro, president of Colombia, the CELAC rotating chair, Brazilian President Luiz Inacio Lula da Silva, Chilean President Gabriel Boric, and Dilma Rousseff, president of the New Development Bank and former Brazilian president, addressed the event respectively.
Special representative of Yamandu Orsi, president of Uruguay, the incoming CELAC rotating chair, read out the president’s congratulatory letter.
Faced with a world full of uncertainties, LAC countries and China should work together to promote continuous new progress in building a community with a shared future, they said.
Both sides should respect each other and firmly support each other in safeguarding sovereignty and choosing their own development path, they said, calling for strengthening the synergy between the development strategies of LAC countries and the Belt and Road Initiative, and promoting cooperation in trade, investment, infrastructure, agriculture, science and technology, new energy and education.
The two sides should also promote exchanges and dialogues among civilizations, safeguard the authority of the U.N., support multilateralism and free trade, and oppose unilateralism, protectionism, power politics and bullying to safeguard the common interests of the Global South, they added.
Source: People’s Republic of China – State Council News
BEIJING, May 13 — Chinese Premier Li Qiang met with Brazilian President Luiz Inacio Lula da Silva in Beijing on Tuesday.
Li said that under the strategic guidance of the two heads of state, China-Brazil relations have entered a golden period of growth. China is willing to work with Brazil to maintain high-level exchanges, deepen political mutual trust, constantly enrich the strategic connotation of bilateral relations, comprehensively expand mutually beneficial cooperation between the two sides, and walk side by side and achieve mutual success on the road of modernization, he added.
Noting the current international situation is complex and volatile, Li said that as major developing countries and important emerging economies in the world, China and Brazil should unite, cooperate more closely and join hands in the face of risks and challenges.
China is willing to enhance the alignment of development strategies with Brazil, give full play to the complementary advantages of industrial structures, explore more points of convergence of interests, deepen cooperation in areas such as finance, trade and investment, infrastructure, industrial chains, and the green transformation, and create more flagship projects, Li said.
He called on both sides to enhance cooperation in areas such as artificial intelligence, the digital economy, advanced manufacturing and biomedicine, to continuously expand the innovative impetus for practical cooperation between the two countries.
China is willing to maintain close multilateral communication and coordination with Brazil, continue to firmly safeguard the central role of the United Nations, practice true multilateralism, promote an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization, advance the building of a community with a shared future for mankind, and contribute important strength to maintaining world peace and stability, Li said.
Lula said Brazil attaches great importance to developing relations with China and is willing to further enhance high-level exchanges with China, strengthen the alignment of Brazil’s development strategy with the Belt and Road Initiative, and deepen mutually beneficial cooperation.
Brazil is willing to maintain close multilateral communication and cooperation with China, support multilateralism, jointly resist unilateralism and protectionism, safeguard national sovereignty, and promote the common development of the Global South, Lula said.
Source: People’s Republic of China – State Council News
BEIJING, May 13 — Chinese Premier Li Qiang on Tuesday sent a congratulatory message to Mark Carney on his assuming office as Canadian prime minister.
Noting that China attaches high importance to the relationship with Canada, Li said that he is willing to work with Carney to take the 55th anniversary of the establishment of diplomatic ties and the 20th anniversary of the China-Canada strategic partnership as an opportunity to promote China-Canada relations in the right direction of improvement and development, on the basis of equality and mutual respect, so as to better benefit both countries and the two peoples.
Source: United States House of Representatives – Congressman Ed Case (Hawai‘i – District 1)
(Washington, D.C) — Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and Joni Ernst (R-Iowa), Congressman Ed Case (D-Hawaii-01), and Delegate Aumua Amata Radewagen (R-A.S.), introduced a bipartisan, bicameral bill aimed at strengthening the United States’ strategic partnerships with Pacific Island nations, supporting sustainable development, and combating the increasing Chinese aggression in the region. The Pacific Partnership Act would help the U.S. establish a clear, comprehensive strategy to support diplomatic, security, and economic relationships in the Indo-Pacific region.
“Our Pacific Partnership Act responds directly to the reality that our country’s and world’s future lies in the Indo-Pacific, and that the islands of the Pacific are our indispensable partners in charting that future,” said Congressman Case.
“The Pacific Islands are under increasingly severe economic, environmental and geopolitical stress, and we must expand our generational engagement to assist them where they most need assistance. The Pacific Partnership Act, molded directly on the Pacific Islands’ own blueprint to their collective future, is our roadmap to expanded engagement as well.”
“Supporting our allies and partners in the Indo-Pacific is essential to combating the Chinese Communist Party’s influence and to our long-term national security,” said Senator Cortez Masto. “This bipartisan bill is critical to strengthening our ties with our allies in the Pacific and ensuring they become enduring global relationships.”
“Strengthening America’s partnerships in the Indo-Pacific is critical to deterring Chinese aggression,” said Senator Ernst. “This bipartisan legislation equips us to work with nations in the Pacific that serve as the first line of defense against the Chinese Communist Party and keep Americans safe at home.”
“Thank you to Senator Cortez Masto, Senator Ernst, and Congressman Case for their focus on these important partnerships that are close to home for my congressional district in the South Pacific,” said Congresswoman Radewagen. “We need sustained U.S. engagement for enduring partnerships in the Pacific Islands, keeping China’s influence in check, and strengthening mutual development opportunities.”
The U.S. has a longstanding relationship with the Pacific Islands, and they play a crucial role in U.S. national security, facilitating military operations in support of American allies and partners. Nevada – through the National Guard – collaborates with the Republic of Fiji, the Kingdom of Tonga, and the Independent State of Samoa under the National Guard Bureau’s State Partnership Program, strengthening security cooperation globally.
The Pacific Partnership Act would strengthen these crucial ties by creating a “Strategy for Pacific Partnership”.
This strategy, crafted by the President and presented to Congress every four years, would outline U.S. involvement in the Pacific Islands and highlight combined efforts to combat regional challenges including natural disasters, security threats, and economic development.
Read the full bill here.
###
US Senate News:
Source: United States Senator for Commonwealth of Virginia Mark R Warner
WASHINGTON — Today, Vice Chairman of the Senate Select Committee on Intelligence Mark R. Warner (D-VA) joined 26 of his colleagues in introducing a resolution to condemn the gift of a luxury airplane, valued at $400 million, President Donald Trump announced he will receive from the government of Qatar. According to reports, Trump intends to designate the plane as Air Force One while in office and then transfer it to a foundation for personal use following the end of his term.
In addition to Sen. Warner, this resolution is sponsored by Democratic Minority Leader Chuck Schumer (D-NY), and Sens. Brian Schatz (D-HI), Chris Coons (D-DE), Cory Booker (D-NJ), Chris Murphy (D-CT), Jon Ossoff (D-GA), Bernie Sanders (I-VT), Patty Murray (D-WA), Ron Wyden (D-OR), Alex Padilla (D-CA), Jacky Rosen (D-NV), Chris Van Hollen (D-MD), Maria Cantwell (D-WA), Jeanne Shaheen (D-NH), Mazie K. Hirono (D-HI), Dick Durbin (D-IL), Michael Bennet (D-CO), Gary Peters (D-MI), Lisa Blunt Rochester (D-DE), Elissa Slotkin (D-MI), Angus King (I-ME), Amy Klobuchar (D-MN), Tammy Duckworth (D-IL), Jeff Merkley (D-OR), Angela Alsobrooks (D-MD), and Andy Kim (D-NJ). Earlier today, the senators attempted to pass this legislation through the Senate by unanimous consent, but were blocked by Republicans.
“This is corruption plain and simple. The President of the United States accepting a $400 million plane from a foreign government is unheard of, and would require direct consent from Congress,” Sen. Warner said. “This is just the latest act by President Trump that shows his administration has no regard for the rule of law and is ripe to be exploited by foreign actors.”
“President Trump’s penchant for corruption and grift has risen to a new level with the news his presidency is for sale – if you happen to have $400 million dollars,” Leader Schumer said. “This Qatari plane deal would be the largest Presidential bribe in modern history and it’s not just naked corruption, it’s a grave national security threat. Senate Republicans may bury their heads in the sand while Trump tries to enrich himself and his billionaire buddies, but Senate Democrats are going to stand up for the American people and say enough is enough – we condemn this attempt at corruption and gross violation of the Constitution.”
“Air Force One is more than just a plane — it’s a symbol of the presidency and of the United States itself,” Sen. Schatz said. “Any president who accepts this kind of gift, valued at $400 million, from a foreign government creates a clear conflict of interest, raises serious national security questions, invites foreign influence, and undermines public trust in our government. We are asking the Senate to vote to reiterate a basic principle: no president should use public service for personal gain through foreign gifts.”
“We wouldn’t trust another country to decorate the Oval Office, to set up our Situation Room, or to wire the White House briefing room, so why would we let another country build Air Force One for us, which is an airborne version of all three? This isn’t just a massive act of corruption, it’s a national security risk of the highest order,” Sen. Coons said. “If President Trump is so willing to put his own administration in danger for the sake of a $400 million gift, imagine how much danger he’s willing to put the American people in.
“While Republicans plot to gut vital services like Social Security and Medicaid and unleash economic uncertainty onto hardworking Americans, Donald Trump is planning to accept a luxury jet, valued at $400 million, from a foreign government,” Sen. Booker said. “This not only creates a clear conflict of interest, raises serious national security concerns, and undermines public trust in our government, but is a slap in the face to the people across the country who are struggling to make ends meet. All Senators should be able to agree that no one should use public service for personal gain through foreign gifts. I hope my Republican colleagues will support this resolution.”
“The president doesn’t get to trade U.S. foreign policy and national security for a private jet,” Sen. Murphy said. “This resolution sends the message Trump won’t: the Oval Office is not for sale.
“No, Donald Trump cannot accept a $400 million flying palace from the royal family of Qatar. Not only is this farcically corrupt, it is blatantly unconstitutional,” Sen. Sanders said. “Congress must not allow this over-the-top kleptocracy to proceed.”
“President Trump wants to accept a $400 million private jet from a foreign government, have American taxpayers pay to retrofit it as Air Force One, and then keep it for himself to jet around the world as soon as he leaves office. It’s hard to imagine more brazen corruption or a clearer violation of our Constitution’s Emoluments Clause, and there’s no question this outlandish proposal puts our country’s national security at risk,” Sen. Murray said. “Every member of Congress should support this simple resolution condemning violations of the Emoluments Clause and making clear Trump cannot accept a $400 million private jet from Qatar without explicit consent from Congress.”
“If someone came to one of my town halls in Oregon and tried to argue that getting a $400 million jet from the government of Qatar wasn’t corruption, they would be laughed out of town,” Sen. Wyden said. “Instead of securing new allies against adversaries like China or opening new markets for American products, Trump is using America’s clout to get a private jet. It’s corruption plain and simple that fritters away American influence and leaves us weaker.”
“While Republicans in Congress are working to gut Medicaid and Social Security, President Trump is brazenly accepting a luxury jumbo jet from Qatar — for his use during and after he leaves office,” Sen. Padilla said. “Once again, Trump is showing us that he puts his own interests above those of the American people, benefiting himself and leaving working families behind. This foreign gift reeks of corruption, is blatantly against the law, threatens our national security, and will cost taxpayers tens of millions in retrofit costs and security upgrades.”
“Donald Trump is accepting a multimillion dollar plane from a foreign government as a personal gift, while clearly ignoring the Constitution,” Sen. Rosen said. “Trump gets richer off of his position while hardworking families suffer from his reckless actions. This is corruption plain and simple, and I’m supporting this resolution to make our strong opposition clear.”
“Trump’s brazen willingness to accept a luxury jet from Qatar raises the dangerous prospect that the president can be bought and paid for by foreign powers — putting their interests over Americans’ and our national security. Every Senator should join us in rejecting it and blocking the sale of the presidency to the highest bidder,” Sen Van Hollen said.
“Our founding fathers knew that we must protect ourselves from corruption and foreign influence, which is exactly why we have a constitutional provision prohibiting presidents from accepting lavish gifts from foreign governments—a super luxury Boeing 747-8 jumbo jet, reportedly valued at $400 million, is no exception,” Sen. Shaheen said. “Congress and the American public have a right to know the details of any arrangement that calls into question whether the President is acting on behalf of American interests and American interests alone. Further, the security implications of taking a foreign-owned and managed plane and outfitting it with the most sensitive U.S. technology continues to demonstrate a lack of judgement in this administration when it comes to guarding U.S. intelligence.”
“There’s no such thing as a $400 million “no-strings-attached” gift,” Sen. Duckworth said. “This is the mother of all bribes. It puts our national security in jeopardy and erodes public trust—all for the President’s own personal gain. Donald Trump wants to sell our foreign policy and sell out our people.”
“Donald Trump accepting a $400 million gift from a foreign country is corruption in plain sight,” Sen. Hirono said. “Trump’s latest grift undermines our national security, flies in the face of the Constitution, and will cost American taxpayers hundreds of millions, if not billions, in retrofits.”
“The mere notion that the President would cravenly accept a $400 million attempt to win favor from a foreign power is beyond the pale and reeks of corruption. The White House and presidency are sacred trusts from the American people, not venues for Trump to enrich himself and his family with shady deals and influence buying,” Sen. Durbin said. “Our resolution reaffirms what our Constitution makes clear – no President should receive gifts from a foreign power.”
“While President Trump claims to target fraud and abuse, his actions continue to prove that his priorities are his own interests and those of his wealthy friends,” Sen. Bennet said. “His plan to accept a $400 million luxury jet from the Qatari government for use as Air Force One is an act of blatant corruption and a violation of our Constitution that poses severe counterintelligence risks, needlessly undermining U.S. national security.”
“This is corruption in plain sight. Under no circumstance should a sitting president be accepting luxury gifts from a foreign government, especially while negotiating an arms sale,” Sen. Blunt Rochester said. “This is yet another example of President Trump focusing on enriching himself rather than improving the lives of everyday Americans. I’m joining with my colleagues on this resolution to protect national security, to stand up for our constituents, and to uphold the rule of law.”
“If an ordinary government official accepted a gift even a fraction as valuable as this, there would be a full investigation, and potential firings due to concerns of foreign influence,” Sen. Slotkin said. “Now the President is taking a $400 million foreign gift. Beyond the perception of corruption, the idea that a foreign country would have access to Air Force One, as the buyer, during production, leaves it incredibly vulnerable to bugs, tracking devices, and whatever else they or other countries may attempt to manipulate.”
“This is corruption, plain and simple. The U.S. is not for sale, and we cannot allow the presidency to be bought by foreign interests,” Sen. Klobuchar said.
“Just when you think the Trump Administration can’t sink to a new low of ethical misconduct, he accepts a luxury jet from a foreign nation. Corruption on full display,” Sen. Merkley said.
“We’re beyond foreign interference at this point. We’re watching a President invite a foreign government to buy him off,” Sen. Alsobrooks said. “American values are actively being flushed down the toiled by this corrupt President.”
The full text of the resolution is available here.
Source: GlobeNewswire (MIL-OSI)
CALGARY, Alberta, May 13, 2025 (GLOBE NEWSWIRE) — Peyto Exploration & Development Corp. (TSX: PEY) (“Peyto” or the “Company”) is pleased to report operating and financial results for the first quarter of 2025.
Q1 2025 Highlights:
First Quarter 2025 in Review
Peyto was active in the quarter with four drilling rigs in the Greater Sundance and Brazeau areas, as well as with pipeline and compression projects that expanded the existing gathering systems to accommodate incremental production volumes. Natural gas prices recovered in the quarter due to large draws on storage inventories from a relatively cold North American winter, coupled with increased U.S. LNG feed gas demand. The AECO 7A monthly gas price rose 39% from Q4 2024 and averaged $1.92/GJ. Peyto’s realized gas price, before hedging, averaged $3.34/Mcf ($2.90/GJ), 51% higher than AECO 7A, driven by the Company’s diversification to premium demand markets in the US and Canada. Additionally, the Company recorded $0.83/Mcf of realized hedging gains on its gas volumes in the quarter from its mechanistic risk management strategy. All in, Peyto’s realized gas price after hedging totaled $4.17/Mcf or 89% higher than AECO 7A monthly price. The increased realized gas price, combined with Peyto’s low cost structure, boosted FFO by 13% from Q4 2024 to $225.2 million, which funded $102.1 million of capital expenditures, $65.7 million of shareholder dividends and allowed for a $65.7 million reduction in net debt in the quarter.
_________________________________________________
1This press release contains certain non-GAAP and other financial measures to analyze financial performance, financial position, and cash flow including, but not limited to “operating margin”, “profit margin”, “return on capital”, “return on equity”, “netback”, “funds from operations”, “free funds flow”, “total cash costs”, and “net debt”. These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS, such as earnings, cash flow from operating activities, and cash flow used in investing activities, as indicators of Peyto’s performance. See “Non-GAAP and Other Financial Measures” included at the end of this press release and in Peyto’s most recently filed MD&A for an explanation of these financial measures and reconciliation to the most directly comparable financial measure under IFRS.
2Funds from operations is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release and in the Q1 2025 MD&A.
3Free funds flow is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release and in the Q1 2025 MD&A.
4Cash costs is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release.
5Net debt a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release and in the Q1 2025 MD&A.
6Total capital expenditures is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release and in the Q1 2025 MD&A.
7Operating Margin is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release.
8Profit Margin is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release.
9Return on capital employed and return on equity are non-GAAP financial ratios. See “non-GAAP and Other Financial Measures” in this news release.
| Three Months Ended Mar 31 | % | ||
| 2025 | 2024 | Change | |
| Operations | |||
| Production | |||
| Natural gas (Mcf/d) | 710,459 | 647,234 | 10% |
| NGLs (bbl/d) | 15,473 | 17,145 | -10% |
| Thousand cubic feet equivalent (Mcfe/d @ 1:6) | 803,299 | 750,105 | 7% |
| Barrels of oil equivalent (boe/d @ 6:1) | 133,883 | 125,018 | 7% |
| Production per million common shares (boe/d) | 673 | 643 | 5% |
| Product prices | |||
| Realized natural gas price – after hedging and diversification ($/Mcf) | 4.17 | 4.05 | 3% |
| Realized NGL price – after hedging ($/bbl) | 62.97 | 60.36 | 4% |
| Net sales price(2) ($/Mcfe) | 4.90 | 4.87 | 1% |
| Royalties ($/Mcfe) | 0.25 | 0.24 | 4% |
| Operating ($/Mcfe) | 0.53 | 0.55 | -4% |
| Transportation ($/Mcfe) | 0.29 | 0.30 | -3% |
| Field netback(1) ($/Mcfe) | 3.88 | 3.82 | 2% |
| General & administrative expenses ($/Mcfe) | 0.06 | 0.06 | 0% |
| Interest expense ($/Mcfe) | 0.29 | 0.36 | -19% |
| Financial ($000, except per share) | |||
| Natural gas and NGL sales including realized hedging gains(2) | 354,268 | 332,541 | 7% |
| Funds from operations(1) | 225,218 | 204,622 | 10% |
| Funds from operations per share – basic(1) | 1.13 | 1.05 | 8% |
| Funds from operations per share – diluted(1) | 1.12 | 1.05 | 7% |
| Total dividends | 65,676 | 64,158 | 2% |
| Total dividends per share | 0.33 | 0.33 | 0% |
| Earnings | 114,117 | 99,875 | 14% |
| Earnings per share – basic | 0.57 | 0.51 | 12% |
| Earnings per share – diluted | 0.57 | 0.51 | 12% |
| Total capital expenditures(1) | 102,129 | 113,762 | -10% |
| Decommissioning expenditures | 2,872 | 4,206 | -32% |
| Total payout ratio(1) | 76% | 89% | -15% |
| Weighted average common shares outstanding – basic | 199,017,749 | 194,416,710 | 2% |
| Weighted average common shares outstanding – diluted | 200,359,842 | 195,159,389 | 3% |
| Net debt(1) | 1,282,891 | 1,339,558 | -4% |
| Shareholders’ equity | 2,593,128 | 2,683,990 | -3% |
| Total assets | 5,356,226 | 5,373,202 | 0% |
(1) This is a Non-GAAP financial measure or ratio. See “non-GAAP and Other Financial Measures” in this news release and in the Q1 2025 MD&A
(2) Excludes marketing revenue and other income
Capital Expenditures
Peyto drilled 19 gross (18.2 net) horizontal wells in the first quarter including 10 Wilrich, 1 Falher, 4 Notikewin, 3 Dunvegan, and 1 Cardium well in the core Brazeau and Sundance areas. The Company also completed 13 gross (13.0 net) wells and brought 14 gross (14.0 net) wells on production in the quarter resulting in total well-related capital expenditures of $85.6 million. Additionally, Peyto invested $15.5 million in gathering and processing facilities that included optimization projects and a pipeline to connect third-party volumes to Peyto’s Brazeau plant for long-term fee income. First quarter average drilling costs were slightly higher than the prior quarter, which was attributed to both cold weather operations and the execution of a uniquely over-pressured three-well pad in the Edson area. This was offset by lower completion costs, which fell 6% on a per-well basis from Q4 2024.
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2024 Q1 |
2024 Q2 |
2024 Q3 |
2024 Q4 |
2025 Q1(1) |
|
| Gross Hz Spuds | 135 | 70 | 61 | 64 | 95 | 95 | 72 | 75 | 18 | 20 | 21 | 16 | 19 |
| Measured Depth (m) | 4,229 | 4,020 | 3,848 | 4,247 | 4,453 | 4,611 | 4891 | 5,092 | 5,220 | 5,364 | 4,804 | 4,987 | 4,976 |
| Drilling ($MM/well) | $1.90 | $1.71 | $1.62 | $1.68 | $1.89 | $2.56 | $2.85 | $2.90 | $3.05 | $2.89 | $2.81 | $2.85 | $3.01 |
| $ per meter | $450 | $425 | $420 | $396 | $424 | $555 | $582 | $569 | $585 | $539 | $585 | $572 | $605 |
| Completion ($MM/well) | $1.00 | $1.13 | $1.01(2) | $0.94 | $1.00 | $1.35 | $1.54 | $1.70 | $1.80 | $1.75 | $1.56 | $1.66 | $1.56 |
| Hz Length (m) | 1,241 | 1,348 | 1,484 | 1,682 | 1,612 | 1,661 | 1,969 | 2,184 | 2,223 | 2,350 | 2,224 | 1,989 | 1,961 |
| $ per Hz Length (m) | $803 | $751 | $679 | $560 | $620 | $813 | $781 | $776 | $809 | $744 | $703 | $834 | $793 |
| $ ‘000 per Stage | $81 | $51 | $38 | $36 | $37 | $47 | $52 | $52 | $55 | $49 | $48 | $56 | $56 |
(1) Based on field estimates and may be subject to minor adjustments going forward.
(2) Peyto’s Montney well is excluded from drilling and completion cost comparison.
Peyto also spent $0.8 million during the quarter on acquiring mineral rights, seismic, and minor acquisitions.
Commodity Prices and Realizations
In the first quarter, Peyto realized a natural gas price after hedging and diversification of $4.17/Mcf, or $3.63/GJ, 89% higher than the average AECO 7A monthly benchmark of $1.92/GJ due to realized hedging gains and the Company’s market diversification to non-AECO hubs. Peyto’s natural gas hedging activity resulted in a realized gain of $0.83/Mcf ($53.0 million) in the quarter.
Condensate and pentanes averaged $90.88/bbl for the quarter, down 1% year over year, while Canadian dollar WTI (“WTI CAD”) decreased 1% to $102.49/bbl over the same period. Other NGL volumes were sold at an average price of $32.41/bbl, or 32% of WTI CAD, up 3% from $31.37/bbl in Q1 2024. Peyto’s combined realized NGL price in the quarter was $64.56/bbl before hedging, and $62.97/bbl including a hedging loss of $1.59/bbl.
Netbacks
The Company’s realized natural gas and NGL sales yielded a combined revenue stream of $4.20/Mcfe before hedging gains of $0.70/Mcfe, resulting in a quarterly net sales price of $4.90/Mcfe, consistent with $4.87/Mcfe realized in Q1 2024. Cash costs totaled $1.42/Mcfe in the quarter, 6% lower than $1.51/Mcfe in Q1 2024 due to lower operating, transportation and interest costs. Operating costs are typically highest in the colder, first quarter and Peyto expects per-unit operating costs to trend downward throughout 2025. Peyto’s cash netback (net sales price including other income, net marketing revenue, realized gain on foreign exchange, less total cash costs) was $3.53/Mcfe, the highest since Q1 2023, driving a solid 71% operating margin. Historical cash costs and operating margins are shown in the following table:
| 2022 | 2023 | 2024 | 2025 | ||||||||||
| ($/Mcfe) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4(2) | Q1 | Q2 | Q3 | Q4 | Q1 |
| Revenue(1) | 5.25 | 5.48 | 5.01 | 5.74 | 5.10 | 4.07 | 4.32 | 4.83 | 4.92 | 3.97 | 3.99 | 4.34 | 4.95 |
| Royalties | 0.60 | 0.95 | 0.70 | 0.72 | 0.53 | 0.18 | 0.29 | 0.30 | 0.24 | 0.26 | 0.18 | 0.21 | 0.25 |
| Op Costs | 0.41 | 0.39 | 0.38 | 0.41 | 0.50 | 0.47 | 0.44 | 0.55 | 0.55 | 0.52 | 0.54 | 0.50 | 0.53 |
| Transportation | 0.28 | 0.27 | 0.26 | 0.22 | 0.24 | 0.29 | 0.29 | 0.26 | 0.30 | 0.30 | 0.31 | 0.27 | 0.29 |
| G&A | 0.03 | 0.02 | 0.02 | 0.02 | 0.03 | 0.05 | 0.04 | 0.06 | 0.06 | 0.06 | 0.03 | 0.05 | 0.06 |
| Interest | 0.21 | 0.20 | 0.21 | 0.21 | 0.22 | 0.22 | 0.28 | 0.40 | 0.36 | 0.36 | 0.38 | 0.33 | 0.29 |
| Cash cost pre-royalty | 0.93 | 0.88 | 0.87 | 0.86 | 0.99 | 1.03 | 1.05 | 1.27 | 1.27 | 1.24 | 1.26 | 1.15 | 1.17 |
| Total Cash Costs10 | 1.53 | 1.83 | 1.57 | 1.58 | 1.52 | 1.21 | 1.34 | 1.57 | 1.51 | 1.50 | 1.44 | 1.36 | 1.42 |
| Cash Netback11 | 3.72 | 3.65 | 3.44 | 4.16 | 3.58 | 2.86 | 2.98 | 3.26 | 3.41 | 2.47 | 2.55 | 2.98 | 3.53 |
| Operating Margin | 71% | 67% | 69% | 72% | 71% | 70% | 69% | 67% | 69% | 62% | 64% | 69% | 71% |
(1) Revenue includes other income, net marketing revenue and realized gains on foreign exchange.
(2) First quarter of Repsol assets included in Peyto’s results
Depletion, depreciation, and amortization charges of $1.34/Mcfe, along with provisions for current tax, deferred tax, performance-based compensation and stock-based compensation resulted in earnings of $1.58 /Mcfe, or a 32% profit margin. Dividends to shareholders totaled $0.91/Mcfe.
Hedging and Marketing
The Company has been active in hedging future production with financial and physical fixed price contracts to protect a portion of its future revenue from commodity price and foreign exchange volatility. The following table summarizes Peyto’s hedge position for Q2–Q4 2025, calendar 2026, and calendar 2027.
| Q2 2025 | Q3 2025 | Q4 2025 | 2026 | 2027 | |
| Natural Gas | |||||
| Volume (MMcf/d) | 510 | 510 | 447 | 406 | 61 |
| Average Fixed Price(1)($/Mcf) | 3.90 | 3.90 | 4.32 | 3.99 | 4.05 |
| WTI Swaps | |||||
| Volume (bbls/d) | 5,000 | 3,800 | 2,400 | 745 | – |
| Average Fixed Price ($/bbl) | 98.94 | 95.51 | 93.14 | 86.19 | – |
| WTI Collars | |||||
| Volume (bbls/d) | 500 | 500 | 500 | 248 | – |
| Put–Call ($/bbl) | 90.00–100.25 | 90.00–110.00 | 90.00–100.50 | 87.50–100.25 | – |
| Propane | |||||
| Volume (bbls/d) | 500 | 500 | 500 | 123 | – |
| Average Fixed Price (US$/bbl) | 33.60 | 33.60 | 33.60 | 33.60 | – |
| USD FX Contracts | |||||
| Amount sold (USD 000s) | 69,000 | 63,000 | 47,000 | 112,500 | – |
| Rate (CAD/USD) | 1.352 | 1.352 | 1.355 | 1.355 | – |
(1) At 1.39 CAD/USD FX rate for USD contracts
The Company’s fixed price contracts combined with its diversification to multiple hubs in North America allow for revenue security and support Peyto’s capital expenditure program, continued shareholder returns through dividends, and debt reduction. Details of Peyto’s ongoing marketing and diversification efforts are available on Peyto’s website at https://www.peyto.com/Marketing.aspx.
_________________________________________________
10Total Cash costs is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release.
11Cash netback is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release and in the Q1 2025 MD&A.
Activity Update
Since the start of the second quarter, Peyto has continued with an active drilling program across all core areas with 8 wells (6.7 net) drilled, 11 wells (9.4 net) completed, and 12 wells (12.0 net) brought on production. The Company intends to continue with a steady capital program through spring break-up and the rest of 2025.
Last month, Peyto completed a third Falher well in Sundance, as a follow-up to the two wells that discovered a new channel last year. The results to date from these wells have demonstrated top decile internal rate of returns and the team has identified at least 20 additional locations on Peyto lands. The Company plans to drill three more wells in the channel before the end of the year, which will help further delineate the trend and prove up productivity.
Recently, the Company applied an alternate drilling technique and liner design on two low working-interest Cardium wells. This technique, which targets drilling just below the Cardium sand, allowed Peyto to achieve significantly longer laterals while reducing per unit drill costs below historical levels in the area. A cemented ball drop system allowed for the deployment of 60 stages in each well—a new record for Peyto. Early results from these wells are encouraging and the Company plans to follow up with additional wells this year to further test the design. With continued success, Peyto sees the opportunity to apply the new design to other Cardium inventory which comprises approximately 25% of the Company’s undrilled, booked reserves volumes.
Beginning in April, Peyto commissioned a new pipeline to accept approximately 8 MMcf/d of natural gas from a third party at its Brazeau gas plant, relating to a multi-year gas processing agreement which utilizes spare capacity at the facility. This new pipeline also provides a future opportunity to serve other third-party volumes.
Outlook
While the recent weakness in oil prices has a minimal effect on Peyto’s cash flow, it could be constructive to natural gas prices if the fall in oil prices lowers oil activity and associated gas production in the US. The Company remains bullish on forward natural gas prices with the recent start-up of US LNG export facilities and the ramp up of LNG Canada throughout 2025, combined with continued natural gas demand for AI driven data centres in North America. Further, Peyto is well-positioned with its hedge book and market diversification to provide shareholders with both revenue security and exposure to commodity price upside. Over the next several years, the Company has significant volumes exposed to premium demand markets in the US and Canada, which offer a superior price above the current AECO market.
Despite the political volatility and global economic uncertainty, Peyto remains committed to its 2025 capital guidance of $450 to $500 million. The program is designed with flexibility in the back half of the year to adjust to changing commodity prices and the business environment. Peyto will manage production to minimize exposure to weaker priced markets, when necessary, while the Company’s systematic hedging and market diversification programs secure revenues to support future dividends and further strengthen the balance sheet.
Conference Call and Webcast
A conference call will be held with senior management of Peyto to answer questions with respect to the Company’s Q1 2025 results on Wednesday, May 14, 2025, at 9:00 a.m. Mountain Time (MT), or 11:00 a.m. Eastern Time (ET).
Access to the webcast can be found at: https://edge.media-server.com/mmc/p/svumnnnm. To participate in the call, please register for the event at: Participant Call Link. Participants will be issued a dial in number and PIN to join the conference call and ask questions. Alternatively, questions can be submitted prior to the call at info@peyto.com. The conference call will be available on the Peyto Exploration & Development website at www.peyto.com.
Annual and Special Meeting
Peyto’s Annual and Special Meeting of Shareholders is scheduled for 3:00 p.m. on Thursday, May 22, 2025, at the Eau Claire Tower, +15 level, 600 – 3rd Avenue SW, Calgary, Alberta. Shareholders are encouraged to read the Information Circular and vote in advance of the proxy voting deadline of Tuesday, May 20 at 3:00 p.m. (Calgary time) and attend this in-person meeting. Leading independent proxy advisory firms have recommended Peyto shareholders (“Shareholders”) vote “FOR” all the proposed resolutions. Shareholders who have questions or need assistance with voting their shares should contact Peyto’s strategic advisor and proxy solicitation agent, Laurel Hill Advisory Group, by telephone at 1-877-452-7184 or by email at assistance@laurelhill.com. Shareholders who do not wish to attend are encouraged to visit the Peyto website at www.peyto.com where there is a wealth of information designed to inform and educate investors and where a copy of the AGM presentation will be posted. A monthly report from the President can also be found on the website which follows the progress of the capital program and the ensuing production growth.
Management’s Discussion and Analysis
A copy of the first quarter report to shareholders, including the MD&A, unaudited consolidated financial statements and related notes, is available at http://www.peyto.com/Files/Financials/2025/Q12025FS.pdf and at http://www.peyto.com/Files/Financials/2025/Q12025MDA.pdf and will be filed at SEDAR+, www.sedarplus.com at a later date.
Jean-Paul Lachance
President & Chief Executive Officer
May 13, 2025
Phone: (403) 261-6081
Fax: (403) 451-4100
info@peyto.com
Cautionary Statements
Forward-Looking Statements
This news release contains certain forward-looking statements or information (“forward-looking statements”) as defined by applicable securities laws that involve substantial known and unknown risks and uncertainties, many of which are beyond Peyto’s control. These statements relate to future events or the Company’s future performance. All statements other than statements of historical fact may be forward-looking statements. The use of any of the words “plan”, “expect”, “prospective”, “project”, “intend”, “believe”, “should”, “anticipate”, “estimate”, or other similar words or statements that certain events “may” or “will” occur are intended to identify forward-looking statements. The projections, estimates and beliefs contained in such forward-looking statements are based on management’s estimates, opinions, and assumptions at the time the statements were made, including assumptions relating to: macro-economic conditions, including public health concerns and other geopolitical risks, the condition of the global economy and, specifically, the condition of the crude oil and natural gas industry, and the ongoing significant volatility in world markets; other industry conditions; changes in laws and regulations including, without limitation, the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; increased competition; the availability of qualified operating or management personnel; fluctuations in other commodity prices, foreign exchange or interest rates; stock market volatility and fluctuations in market valuations of companies with respect to announced transactions and the final valuations thereof; results of exploration and testing activities; and the ability to obtain required approvals and extensions from regulatory authorities. Management of the Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Peyto will derive from them. As such, undue reliance should not be placed on forward-looking statements. Forward-looking statements contained herein include, but are not limited to, statements regarding: management’s assessment of Peyto’s future plans and operations, including the 2025 capital expenditure program, drilling plans relating to the Falher discovery at Sundance and the additional wells planned using the alternate drilling technique in the Cardium; the expectation that per-unit operating costs will trend lower in 2025; the expectation that recent weakness in oil prices will have minimal effect on Peyto and could be constructive if lower oil activity decreases associated gas; LNG and AI data centres increasing natural gas demand and setting up a bullish price environment; the sustainability of the Company’s dividend; the effectiveness of the Company’s hedging program at securing revenue; the timing of Peyto’s annual general meeting; and the Company’s overall strategy and focus.
The forward-looking statements contained herein are subject to numerous known and unknown risks and uncertainties that may cause Peyto’s actual financial results, performance or achievement in future periods to differ materially from those expressed in, or implied by, these forward-looking statements, including but not limited to, risks associated with: continued changes and volatility in general global economic conditions including, without limitations, the economic conditions in North America and public health concerns; continued fluctuations and volatility in commodity prices, foreign exchange or interest rates; continued stock market volatility; imprecision of reserves estimates; competition from other industry participants; failure to secure required equipment; increased competition; the lack of availability of qualified operating or management personnel; environmental risks; changes in laws and regulations including, without limitation, the adoption of new environmental and tax laws, tariffs, and regulations and changes in how they are interpreted and enforced; the results of exploration and development drilling and related activities; and the ability to access sufficient capital from internal and external sources. In addition, to the extent that any forward-looking statements presented herein constitutes future-oriented financial information or financial outlook, as defined by applicable securities legislation, such information has been approved by management of Peyto and has been presented to provide management’s expectations used for budgeting and planning purposes and for providing clarity with respect to Peyto’s strategic direction based on the assumptions presented herein and readers are cautioned that this information may not be appropriate for any other purpose. Readers are encouraged to review the material risks discussed in Peyto’s latest annual information form under the heading “Risk Factors” and in Peyto’s annual management’s discussion and analysis under the heading “Risk Factors”.
The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Peyto’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Peyto will derive there from. The forward-looking statements, including any future-oriented financial information or financial outlook, contained in this news release speak only as of the date hereof and Peyto does not assume any obligation to publicly update or revise them to reflect new information, future events or circumstances or otherwise, except as may be required pursuant to applicable securities laws.
Barrels of Oil Equivalent
To provide a single unit of production for analytical purposes, natural gas production and reserves volumes are converted mathematically to equivalent barrels of oil (BOE). Peyto uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 BOE ratio is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on current prices. While the BOE ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value.
Thousand Cubic Feet Equivalent (Mcfe)
Natural gas volumes recorded in thousand cubic feet (mcf) are converted to barrels of oil equivalent (boe) using the ratio of six (6) thousand cubic feet to one (1) barrel of oil (bbl). Natural gas liquids and oil volumes in barrel of oil (bbl) are converted to thousand cubic feet equivalent (Mcfe) using a ratio of one (1) barrel of oil to six (6) thousand cubic feet. This could be misleading, particularly if used in isolation as it is based on an energy equivalency conversion method primarily applied at the burner tip and does not represent a value equivalency at the wellhead.
Non-GAAP and Other Financial Measures
Throughout this press release, Peyto employs certain measures to analyze financial performance, financial position, and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS, such as net income (loss), cash flow from operating activities, and cash flow used in investing activities, as indicators of Peyto’s performance.
Non-GAAP Financial Measures
Funds from Operations
“Funds from operations” is a non-GAAP measure which represents cash flows from operating activities before changes in non-cash operating working capital, decommissioning expenditure, provision for performance-based compensation and transaction costs. Management considers funds from operations and per share calculations of funds from operations to be key measures as they demonstrate the Company’s ability to generate the cash necessary to pay dividends, repay debt and make capital investments. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, funds from operations provides a useful measure of Peyto’s ability to generate cash that is not subject to short-term movements in operating working capital. The most directly comparable GAAP measure is cash flows from operating activities.
| Three Months Ended March 31 |
|||
| ($000) | 2025 | 2024 | |
| Cash flows from operating activities | 219,116 | 196,829 | |
| Change in non-cash working capital | 730 | 3,587 | |
| Decommissioning expenditures | 2,872 | 4,206 | |
| Performance-based compensation | 2,500 | – | |
| Funds from operations | 225,218 | 204,622 | |
Free Funds Flow
Peyto uses “free funds flow” as an indicator of the efficiency and liquidity of Peyto’s business, measuring its funds after capital investment available to manage debt levels, pay dividends, and return capital to shareholders through activities such as share repurchases. Peyto calculates free funds flow as cash flows from operating activities before changes in non-cash operating working capital, provision for performance-based compensation, and transaction costs, less total capital expenditures, allowing Management to monitor its free funds flow to inform its capital allocation decisions. The most directly comparable GAAP measure to free funds flow is cash from operating activities. The following table details the calculation of free funds flow and the reconciliation from cash flow from operating activities to free funds flow.
| Three Months Ended March 31 |
|||
| ($000) | 2025 | 2024 | |
| Cash flows from operating activities | 219,116 | 196,829 | |
| Change in non-cash working capital | 730 | 3,587 | |
| Performance-based compensation | 2,500 | – | |
| Total capital expenditures | (102,129) | (113,762) | |
| Free funds flow | 120,217 | 86,654 | |
Total Capital Expenditures
Peyto uses the term “total capital expenditures” as a measure of capital investment in exploration and production activity, as well as property acquisitions and divestitures, and such spending is compared to the Company’s annual budgeted capital expenditures. The most directly comparable GAAP measure for total capital expenditures is cash flow used in investing activities. The following table details the calculation of cash flow used in investing activities to total capital expenditures.
| Three Months Ended March 31 |
|||
| 2025 | 2024 | ||
| Cash flows used in investing activities | 103,321 | 97,634 | |
| Change in prepaid capital | (431) | (4,653) | |
| Change in non-cash working capital relating to investing activities | (761) | 20,781 | |
| Total capital expenditures | 102,129 | 113,762 | |
Net Debt
“Net debt” is a non-GAAP financial measure that is the sum of long-term debt and working capital excluding the current financial derivative instruments, current portion of lease obligations and current portion of decommissioning provision. It is used by management to analyze the financial position and leverage of the Company. Net debt is reconciled to long-term debt which is the most directly comparable GAAP measure.
| ($000) | March 31, 2025 | December 31, 2024 | March 31, 2024 | ||
| Long-term debt | 1,171,497 | 1,295,238 | 1,296,844 | ||
| Current assets | (269,336) | (394,517) | (403,467) | ||
| Current liabilities | 361,267 | 269,609 | 260,380 | ||
| Financial derivative instruments – current | 29,913 | 188,136 | 194,917 | ||
| Current portion of lease obligation | (950) | (936) | (1,322) | ||
| Decommissioning provision – current | (9,500) | (8,956) | (7,794) | ||
| Net debt | 1,282,891 | 1,348,574 | 1,339,558 | ||
Net marketing revenue
Peyto uses the term “net marketing revenue” to evaluate the profitability of products purchased from third parties that are resold. Net marketing revenue is calculated as marketing revenue less marketing purchases.
| Three Months Ended March 31 | |||
| ($000) | 2025 | 2024 | |
| Marketing revenue | 8,342 | 25,851 | |
| Marketing purchases | (7,283) | (26,238) | |
| Net marketing revenue | 1,059 | (387) | |
Non-GAAP Financial Ratios
Funds from Operations per Share
Peyto presents funds from operations per share by dividing funds from operations by the Company’s diluted or basic weighted average common shares outstanding. “Funds from operations” is a non-GAAP financial measure. Management believes that funds from operations per share provides investors an indicator of funds generated from the business that could be allocated to each shareholder’s equity position.
Netback per MCFE and BOE
“Netback” is a non-GAAP measure that represents the profit margin associated with the production and sale of petroleum and natural gas. Peyto computes “field netback per Mcfe” as commodity sales from production, plus net marketing revenue, if any, plus other income, less royalties, operating, and transportation expenses, divided by production. “Cash netback” is calculated as “field netback” less interest, less general and administration expense and plus or minus realized gain on foreign exchange, divided by production. “After-tax cash netback” is calculated as “cash netback” less current tax, divided by production. Netbacks are per-unit-of-production measures used to assess Peyto’s performance and efficiency.
| Three Months Ended March 31 | ||
| ($/Mcfe) | 2025 | 2024 |
| Gross sale price | 4.20 | 3.50 |
| Realized hedging gain | 0.70 | 1.37 |
| Net sale price | 4.90 | 4.87 |
| Net marketing revenue | 0.02 | (0.01) |
| Other income | 0.03 | 0.05 |
| Royalties | (0.25) | (0.24) |
| Operating costs | (0.53) | (0.55) |
| Transportation | (0.29) | (0.30) |
| Field netback | 3.88 | 3.82 |
| Net general and administrative | (0.06) | (0.06) |
| Interest and financing | (0.29) | (0.36) |
| Realized gain on foreign exchange | – | 0.01 |
| Cash netback ($/Mcfe) | 3.53 | 3.41 |
| Current tax ($/Mcfe) | (0.41) | (0.42) |
| After-tax cash netback ($/Mcfe) | 3.12 | 2.99 |
| After-tax cash netback ($/boe) | 18.69 | 17.99 |
Net marketing revenue per Mcfe
“Net marketing revenue per Mcfe” is comprised of marketing revenue less marketing purchases, as determined in accordance with IFRS, divided by the Company’s total production.
Total Payout Ratio
“Total payout ratio” is a non-GAAP measure which is calculated as the sum of dividends declared plus total capital expenditures plus decommissioning expenditures, divided by funds from operations. This ratio represents the percentage of the capital expenditures and dividends that is funded by cashflow. Management uses this measure, among others, to assess the sustainability of Peyto’s dividend and capital program.
| Three Months Ended March 31 | ||
| ($000, except total payout ratio) | 2025 | 2024 |
| Total dividends declared | 65,676 | 64,158 |
| Total capital expenditures | 102,129 | 113,762 |
| Decommissioning expenditures | 2,872 | 4,206 |
| Total payout | 170,677 | 182,126 |
| Funds from operations | 225,218 | 204,622 |
| Total payout ratio (%) | 76% | 89% |
Operating Margin
Operating Margin is a non-GAAP financial ratio defined as funds from operations, before current tax, divided by revenue before royalties but including realized hedging gains/losses other income and third-party sales net of purchases.
Profit Margin
Profit Margin is a non-GAAP financial ratio defined as net earnings divided by revenue before royalties but including realized hedging gains/losses, other income and third-party sales net of purchases.
Cash Costs
Cash costs is a non-GAAP financial ratio defined as the sum of royalties, operating expenses, transportation expenses, G&A and interest, on a per Mcfe basis. Peyto uses total cash costs to assess operating margin and profit margin.
Source: GlobeNewswire (MIL-OSI)
CALGARY, Alberta, May 13, 2025 (GLOBE NEWSWIRE) — Freehold Royalties Ltd. (Freehold or the Company) (TSX:FRU) announces first quarter results for the period ended March 31, 2025.
First Quarter 2025 Highlights
President’s Message
Freehold’s Q1-2025 production of 16,248 boe/d is at the highest levels in our corporate history, in step with the high quality acquisition work completed in late 2024. The deliberate and strategic build out of our North American royalty portfolio has resulted in a balanced revenue base with Canada contributing 46% of revenue in Q1-2025 and the U.S. contributing 54%. On a volume basis the U.S. represented 43% of our production with premium pricing and higher liquids weighting driving an outsized revenue contribution. Our focus on acquiring mineral title interests in prospect rich basins has contributed to the record level of leasing this quarter in our core U.S. operating areas.
Freehold’s oil weighted portfolio, underpinned by premium operators in select basins across North America, delivered significant value to the Company and our shareholders with $68 million of funds from operations(3) in the quarter, or $0.42/share. Included in our funds from operations was record leasing results with $3.9 million in revenue, including $3.3 million in U.S. leasing revenue. Notably, the majority of the U.S. leases signed in Q1-2025 are targeting the deeper Barnett formation of the Permian basin that is in the early stages of development.
Liquids production increased 8% over Q4-2024 and 15% compared to Q1-2024. The increase is largely attributed to the December 2024 Midland basin acquisition and continued growth in our heavy oil portfolio which grew 7% over Q4-2024 and is up 19% compared to Q1-2024. Our U.S. portfolio continues to be led by consistent drilling activity by some of the highest quality payors in North America who are executing on their multi-year growth plans.
We are maintaining our production guidance range of 15,800 boe/d to 17,000 boe/d for 2025E. The global macro environment has shifted since the end of the first quarter and how that may impact operator plans for the remainder of 2025 is unknown at this point. The industry is in excellent shape to manage commodity price volatility due to the capital discipline and prudent balance sheet management approach over the past number of years. Contributing to this is our positioning in the lowest break-even plays across North America under investment grade operators who take a long term, measured view to capital planning.
David M. Spyker, President and Chief Executive Officer
Dividend Announcement
The board of directors of Freehold has declared a monthly dividend of $0.09 per share to be paid on June 16, 2025, to shareholders of record on May 30, 2025. The dividend is designated as an eligible dividend for Canadian income tax purposes.
Operating and Financial Highlights
| Three Months Ended | |||||||||||
| FINANCIAL ($ millions, except as noted) | Q1-2025 | Q4-2024 | Q1-2024 | ||||||||
| West Texas Intermediate (US$/bbl) | 71.42 | 70.27 | 76.96 | ||||||||
| AECO 7A Monthly Index (Cdn$/Mcf) | 2.02 | 1.46 | 2.07 | ||||||||
| Royalty and other revenue | 91.1 | 76.9 | 74.3 | ||||||||
| Funds from operations (3) | 68.1 | 61.3 | 54.4 | ||||||||
| Funds from operations per share, basic ($) (1)(3) | 0.42 | 0.40 | 0.36 | ||||||||
| Dividends paid per share ($) (2) | 0.27 | 0.27 | 0.27 | ||||||||
| Dividend payout ratio (%) (3) | 65 | % | 66 | % | 75 | % | |||||
| Long-term debt | 294.3 | 300.9 | 223.6 | ||||||||
| Net debt (5)(6) | 272.2 | 282.3 | 210.5 | ||||||||
| Net debt to trailing funds from operations (times) (5) | 1.1x |
1.2x | 0.9x | ||||||||
| OPERATING | |||||||||||
| Total production (boe/d) (4) | 16,248 | 15,306 | 14,714 | ||||||||
| Canadian production (boe/d)(4) | 9,278 | 9,437 | 9,593 | ||||||||
| U.S. production (boe/d)(4) | 6,970 | 5,869 | 5,121 | ||||||||
| Oil and NGL (%) | 65 | % | 65 | % | 63 | % | |||||
| Petroleum and natural gas realized price ($/boe) (4) | 59.29 | 53.80 | 54.81 | ||||||||
| Cash costs ($/boe) (3)(4) | 7.00 | 5.93 | 7.19 | ||||||||
| Netback ($/boe) (3) (4) | 53.01 | 47.25 | 46.62 | ||||||||
| ROYALTY INTEREST DRILLING (gross / net) | |||||||||||
| Canada | 92 / 3.9 |
110 / 3.6 | 132 / 5.9 | ||||||||
| U.S. | 230 / 0.8 |
178 / 0.6 | 168 / 0.5 | ||||||||
(1) Calculated based on the basic weighted average number of shares outstanding during the period
(2) Based on the number of shares issued and outstanding at each record date
(3) See Non-GAAP and Other Financial Measures
(4) See Conversion of Natural Gas to Barrels of Oil Equivalent (boe)
(5) Net debt and net debt to trailing funds from operations are capital management measures
First Quarter Summary
(1) See Non-GAAP and Other Financial Measures
(2) Net debt and net debt to trailing funds from operations are capital management measures
Q1-2025 Drilling and Leasing Activity
In total, 322 gross wells (4.7 net wells) were drilled on Freehold’s royalty lands in Q1-2025, a 12% increase (12% on a net basis) compared to the previous quarter. The increase in drilling reflects the expansion of the Company’s U.S. asset base and the positioning of our assets in areas across North America that continue to attract drilling capital.
On a gross basis, essentially all drilling was oil focused. Approximately 29% of gross wells drilled in Q1-2025 were in Canada and 71% targeted Freehold’s U.S. royalty acreage.
| Three Months Ended | ||||||
| Q1-2025 | Q4-2024 | Q1-2024 | ||||
| Gross | Net (1) | Gross | Net (1) | Gross | Net (1) | |
| Canada | 92 | 3.9 | 110 | 3.6 | 132 | 5.9 |
| United States | 230 | 0.8 | 178 | 0.6 | 168 | 0.5 |
| Total | 322 | 4.7 | 288 | 4.2 | 300 | 6.4 |
(1) Equivalent net wells are aggregate of the numbers obtained by multiplying each gross well by our royalty interest percentage; U.S. wells on Freehold’s lands generally come on production at approximately 10 times the volume that of an average Canadian well in our portfolio.
Canada
Canadian net drilling was up over the previous quarter despite the decline on a gross basis as higher interest wells in the Viking and mineral title drilling in southeast Saskatchewan and the Mannville Stack made up a higher percentage. Q1-2025 drilling in Canada was led again by oil weighted plays including Viking (33 gross wells), southeast Saskatchewan (12 gross wells) and Mannville Stack (9 gross wells).
During Q1-2025, Freehold entered into 14 new leases with seven counterparties totalling approximately $0.6 million in bonus and lease rental revenue. The majority of the new leasing was focused in southeast Saskatchewan and the Mannville Stack.
U.S.
During Q1-2025, 230 gross (0.8 net) wells were drilled on our U.S. lands, up 29% on a gross basis and 33% on a net basis from previous quarter due to a larger footprint in the Midland basin following the December 2024 acquisition and increased activity in the Eagle Ford basin. Approximately 90% of Q1-2025 drilling was focused in the Permian basin and 10% in the Eagle Ford basin.
U.S. wells typically come on production at approximately ten times that of an average Canadian well in the Company’s portfolio, making equivalent net well additions much more valuable in the U.S. compared to Canada. However, a U.S. well can take upwards of six to twelve months on average from initial license to first production, compared to three to four months in Canada.
In Q1-2025, Freehold entered into 11 new U.S. leases with four counterparties, totalling $3.3 million of bonus and lease rental revenue. Leasing activity was predominantly focused on Freehold’s mineral title interests in the Midland and Delaware basins with one lease in the Haynesville basin.
Normal Course Issuer Bid (NCIB) Application
The Company plans to implement an NCIB, pursuant to which Freehold would be permitted to acquire up to 10% of its issued and outstanding common shares that comprise the public float (less common shares held by directors, executive officers and principal securityholders (holders holding greater than 10% of the issued and outstanding Shares) of the Company), through the facilities, rules and regulations of the TSX.
The NCIB will be subject to receipt of certain approvals, including acceptance of the notice of intention to commence an NCIB by the TSX. The NCIB will commence following receipt of all such approvals and will continue until the earlier of: (i) a period of up to one-year; or (ii) the date on which the Company has acquired all common shares sought pursuant to the NCIB. Further particulars of the NCIB will be described in a subsequent press release when approved by the TSX.
Freehold believes establishing a NCIB as part of its capital management strategy is in the best interests of the Company and provides an opportunity to deliver value to shareholders. Decisions regarding utilizing the NCIB will be based on market conditions, share price, best use of funds from operations and other factors including debt repayment and options to expand our portfolio of royalty assets.
Annual Meeting of Shareholders
Freehold’s annual meeting of shareholders (the AGM) will be conducted in person and via live audio webcast at 3:00 PM (MDT) on Wednesday May 14, 2025 at the Calgary Petroleum Club. Further details are available on our website at https://freeholdroyalties.com/investors/events-and-presentations.
Conference Call Details
A webcast to discuss financial and operational results for the period ended March 31, 2025, will be held for the investment community on Wednesday May 14, 2025, beginning at 7:00 AM MT (9:00 AM ET).
A live audio webcast will be accessible through the link below and on Freehold’s website under “Events & Presentations” on Freehold’s website at www.freeholdroyalties.com. To participate in the conference call, you can register using the following link: Live Audio Webcast URL: https://edge.media-server.com/mmc/p/6y39yhx4.
A dial-in option is also available and can be accessed by dialing 1-800-952-5114 (toll-free in North America) participant passcode is 5153824#.
For further information contact
| Freehold Royalties Ltd. Todd McBride, CPA, CMA Investor Relations t. 403.221.0833 e. tmcbride@freeholdroyalties.com |
Nick Thomson, CFA Investor Relations & Capital Markets t. 403.221.0874 e. nthomson@freeholdroyalties.com |
| Select Quarterly Information | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Financial ($millions, except as noted) | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |||||||||
| Royalty and other revenue | 91.1 | 76.9 | 73.9 | 84.5 | 74.3 | 80.1 | 84.2 | 73.7 | |||||||||
| Net Income (loss) | 37.3 | 51.1 | 25.0 | 39.3 | 34.0 | 34.3 | 42.3 | 24.3 | |||||||||
| Per share, basic ($) (1) | 0.23 | 0.33 | 0.17 | 0.26 | 0.23 | 0.23 | 0.28 | 0.16 | |||||||||
| Cash flows from operations | 62.9 | 59.1 | 64.1 | 47.6 | 52.5 | 70.7 | 53.7 | 49.9 | |||||||||
| Funds from operations | 68.1 | 61.3 | 55.7 | 59.6 | 54.4 | 62.8 | 65.3 | 53.0 | |||||||||
| Per share, basic ($) (1)(3) | 0.42 | 0.40 | 0.37 | 0.40 | 0.36 | 0.42 | 0.43 | 0.35 | |||||||||
| Acquisitions & related expenditures | 13.9 | 277.0 | 1.8 | 11.5 | 121.5 | 2.1 | 1.2 | 3.2 | |||||||||
| Dividends paid | 44.3 | 40.7 | 40.7 | 40.7 | 40.7 | 40.7 | 40.7 | 40.7 | |||||||||
| Per share ($) (2) | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | |||||||||
| Dividends declared | 44.3 | 41.9 | 40.7 | 40.7 | 40.7 | 40.7 | 40.7 | 40.7 | |||||||||
| Per share ($) (2) | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | |||||||||
| Dividend payout ratio (%) (3) | 65 | % | 66 | % | 73 | % | 68 | % | 75 | % | 65 | % | 62 | % | 77 | % | |
| Long-term debt | 294.3 | 300.9 | 205.8 | 228.0 | 223.6 | 123.0 | 141.2 | 152.0 | |||||||||
| Net debt (5) | 272.2 | 282.3 | 187.1 | 199.1 | 210.5 | 100.9 | 113.4 | 136.9 | |||||||||
| Shares outstanding, period end (000s) | 164.0 | 164.0 | 150.7 | 150.7 | 150.7 | 150.7 | 150.7 | 150.7 | |||||||||
| Average shares outstanding, basic (000s) (6) | 164.0 | 153.4 | 150.7 | 150.7 | 150.7 | 150.7 | 150.7 | 150.7 | |||||||||
| Operating | |||||||||||||||||
| Light and medium oil (bbl/d) | 6,880 | 6,296 | 6,080 | 6,551 | 6,094 | 6,308 | 6,325 | 6,093 | |||||||||
| Heavy oil (bbl/d) | 1,552 | 1,516 | 1,315 | 1,348 | 1,300 | 1,182 | 1,127 | 1,167 | |||||||||
| NGL (bbl/d) | 2,203 | 2,066 | 1,972 | 1,902 | 1,884 | 1,878 | 1,678 | 1,845 | |||||||||
| Total liquids (bbl/d) | 10,635 | 9,878 | 9,367 | 9,801 | 9,278 | 9,368 | 9,130 | 9,105 | |||||||||
| Natural gas (Mcf/d) | 33,678 | 32,564 | 31,447 | 32,524 | 32,617 | 32,968 | 32,851 | 33,372 | |||||||||
| Total production (boe/d) (4) | 16,248 | 15,306 | 14,608 | 15,221 | 14,714 | 14,863 | 14,605 | 14,667 | |||||||||
| Oil and NGL (%) | 65 | % | 65 | % | 64 | % | 64 | % | 63 | % | 63 | % | 63 | % | 62 | % | |
| Petroleum & natural gas realized price ($/boe) (4) | 59.29 | 53.80 | 54.36 | 59.74 | 54.81 | 57.94 | 61.55 | 54.05 | |||||||||
| Cash costs ($/boe) (3)(4) | 7.00 | 5.93 | 5.42 | 9.80 | 7.19 | 4.73 | 5.10 | 7.19 | |||||||||
| Netback ($/boe) (3)(4) | 53.01 | 47.25 | 47.78 | 49.44 | 46.62 | 52.59 | 55.63 | 46.07 | |||||||||
| Benchmark Prices | |||||||||||||||||
| West Texas Intermediate crude oil (US$/bbl) | 71.42 | 70.27 | 75.09 | 80.57 | 76.96 | 78.32 | 82.26 | 73.78 | |||||||||
| Exchange rate (Cdn$/US$) | 1.43 | 1.40 | 1.37 | 1.37 | 1.35 | 1.36 | 1.34 | 1.34 | |||||||||
| Edmonton Light Sweet crude oil (Cdn$/bbl) | 95.32 | 94.90 | 97.85 | 105.29 | 92.14 | 99.69 | 107.89 | 94.97 | |||||||||
| Western Canadian Select crude oil (Cdn$/bbl) | 84.30 | 80.75 | 83.95 | 91.63 | 77.77 | 76.96 | 93.05 | 78.76 | |||||||||
| Nymex natural gas (US$/Mcf) | 3.79 | 2.86 | 2.24 | 1.96 | 2.33 | 2.98 | 2.64 | 2.17 | |||||||||
| AECO 7A Monthly Index (Cdn$/Mcf) | 2.02 | 1.46 | 0.81 | 1.44 | 2.07 | 2.70 | 2.42 | 2.40 | |||||||||
(1) Calculated based on the basic weighted average number of shares outstanding during the period
(2) Based on the number of shares issued and outstanding at each record date
(3) See Non-GAAP and Other Financial Measures
(4) See Conversion of Natural Gas to Barrels of Oil Equivalent (boe)
(5) The 2023 reported balances have been restated due to the retrospective adoption of IAS 1 (see note 3d of December 31, 2024 audited consolidated financial statements)
(6) Weighted average number of shares outstanding during the period, basic
Forward-Looking Statements
This news release offers our assessment of Freehold’s future plans and operations as of March 12, 2025, and contains forward-looking statements that we believe allow readers to better understand our business and prospects. These forward-looking statements include our expectations for the following:
By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond our control, including general economic conditions, volatility in market prices for crude oil, NGL and natural gas, risks and impacts of tariffs (or other retaliatory trade measures) imposed by Canada or the U.S. (or other countries) on exports and/or imports into and out of such countries, inflation and supply chain issues, the impacts of the ongoing Israeli-Hamas-Hezbollah and potentially the broader Middle-East region, and Russia-Ukraine wars and any associated sanctions as well as OPEC+ curtailments on the global economy and commodity prices, geopolitical instability, political instability, industry conditions, volatility of commodity prices, future production levels, future capital expenditure levels, currency fluctuations, imprecision of reserve estimates, royalties, environmental risks, taxation, regulation, changes in tax or other legislation, competition from other industry participants, inaccurate assumptions on supply and demand factors affecting the consumption of crude oil, NGLs and natural gas, inaccurate expectations for industry drilling levels on our royalty lands, the failure to complete acquisitions on the timing and terms expected, the failure to satisfy conditions of closing for any acquisitions, the lack of availability of qualified personnel or management, stock market volatility, our inability to come to agreement with third parties on prospective opportunities and the results of any such agreement and our ability to access sufficient capital from internal and external sources. Risks are described in more detail in our Annual Information Form for the year-ended December 31, 2024, available at www.sedarplus.ca.
With respect to forward-looking statements contained in this news release, we have made assumptions regarding, among other things, future commodity prices, future capital expenditure levels, future production levels, future exchange rates, future tax rates, future legislation, the cost of developing and producing our assets, the quality of our counterparties and the plans thereof, our ability and the ability of our lessees to obtain equipment in a timely manner to carry out development activities, our ability to market our oil and gas successfully to current and new customers, the performance of current wells and future wells drilled by our royalty payors, our expectation for the consumption of crude oil and natural gas, our expectation for industry drilling levels, our expectation for completion of wells drilled, our ability to obtain financing on acceptable terms, shut-in production, production additions from our audit function, our ability to execute on prospective opportunities and our ability to add production and reserves through development and acquisition activities. Additional operating assumptions with respect to the forward-looking statements referred to above are detailed in the body of this news release.
You are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Our actual results, performance, or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. We can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits we will derive from them. The forward-looking information contained in this document is expressly qualified by this cautionary statement. To the extent any guidance or forward-looking statements herein constitute a financial outlook, they are included herein to provide readers with an understanding of management’s plans and assumptions for budgeting purposes and readers are cautioned that the information may not be appropriate for other purposes. Our policy for updating forward-looking statements is to update our key operating assumptions quarterly and, except as required by law, we do not undertake to update any other forward-looking statements.
You are further cautioned that the preparation of financial statements in accordance with International Financial Reporting Standards (IFRS), which are the Canadian generally accepted accounting principles (GAAP) for publicly accountable enterprises, requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates may change, having either a positive or negative effect on net income, as further information becomes available and as the economic environment changes.
To the extent any guidance or forward-looking statements herein constitutes a financial outlook, they are included herein to provide readers with an understanding of management’s plans and assumptions for budgeting purposes and readers are cautioned that the information may not be appropriate for other purposes. You are further cautioned that the preparation of financial statements in accordance with IFRS requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates may change, having either a positive or negative effect on net income, as further information becomes available and as the economic environment changes.
Conversion of Natural Gas to Barrels of Oil Equivalent (BOE)
To provide a single unit of production for analytical purposes, natural gas production and reserves volumes are converted mathematically to equivalent barrels of oil (boe). We use the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value.
Non-GAAP and Other Financial Measures
Within this news release, references are made to terms commonly used as key performance indicators in the oil and gas industry, which do not have any standardized means prescribed by Canadian generally accepted accounting principles (GAAP). We believe that net revenue, netback, dividend payout ratio, funds from operations per share and cash costs are useful non-GAAP financial measures and ratios for management and investors to analyze operating performance, financial leverage, and liquidity, and we use these terms to facilitate the understanding and comparability of our results of operations. However, these as terms do not have any standardized meanings prescribed by GAAP, such terms may not be comparable with the calculations of similar measures for other entities. This news release also contains the capital management measures net debt and net debt to trailing funds from operations, as defined in note 14 to the unaudited consolidated financial statements as at and for the three months ended March 31, 2025.
Net revenue, which is calculated as revenues less ad valorem and production taxes (as incurred in the U.S. at the state level, largely Texas, which do not charge corporate income taxes but do assess flat tax rates on commodity revenues in addition to property tax assessments) details the net amount Freehold receives from its royalty payors, largely after state withholdings.
The netback, which is also calculated on a boe basis, as average realized price less production and ad valorem taxes, operating expenses, general and administrative expense, cash-based management fees, cash-based interest charges and share-based payouts, represents the per boe netback amount which allows us to benchmark how changes in commodity pricing, net of production and ad valorem taxes, and our cash-based cost structure compare against prior periods.
Cash costs, which is calculated on a boe basis, is comprised by the recurring cash-based costs, excluding taxes, reported on the statements of operations. For Freehold, cash costs are identified as operating expense, general and administrative expense, cash-based interest charges, cash-based management fees and share-based compensation payouts. Cash costs allow Freehold to benchmark how changes in its manageable cash-based cost structure compare against prior periods.
The following table presents the computation of Net Revenue, Cash costs and the Netback:
| $/boe | Q1-2025 | Q4-2024 | Q1-2024 | ||||||
| Royalty and other revenue | 62.29 | 54.59 | 55.47 | ||||||
| Production and ad valorem taxes | (2.28) | (1.41) | (1.66) | ||||||
| Net revenue | $60.01 | $53.18 | $53.81 | ||||||
| Less: | |||||||||
| General and administrative expense | (3.41) | (3.02) | (3.58) | ||||||
| Operating expense | (0.13) | (0.19) | (0.15) | ||||||
| Interest and financing cash expense | (3.31) | (2.67) | (2.79) | ||||||
| Management fee-cash settled | (0.05) | (0.05) | (0.06) | ||||||
| Cash payout on share-based compensation | (0.10) | – | (0.61) | ||||||
| Cash costs | (7.00) | (5.93) | (7.19) | ||||||
| Netback | $53.01 | $47.25 | $46.62 | ||||||
Dividend payout ratios are often used for dividend paying companies in the oil and gas industry to identify dividend levels in relation to funds from operations that are also used to finance debt repayments and/or acquisition opportunities. Dividend payout ratio is a supplementary measure and is calculated as dividends paid as a percentage of funds from operations.
| ($000s, except as noted) | Q1-2025 | Q4-2024 | Q1-2024 | ||||||
| Dividends paid | $44,269 | $40,687 | $40,686 | ||||||
| Funds from operations | $68,050 | $61,332 | $54,362 | ||||||
| Dividend payout ratio (%) | 65% | 66% | 75% | ||||||
Funds from operations per share, which is calculated as funds from operations divided by the weighted average shares outstanding during the period, provides direction if changes in commodity prices, cash costs, and/or acquisitions were accretive on a per share basis. Funds from operations per share is a supplementary measure.
US Senate News:
Source: United States Senator for New Mexico Martin Heinrich
WASHINGTON — U.S. Senator Martin Heinrich (D-N.M.), a member of the Senate Select Committee on Intelligence, sent a letter to President Trump in advance of the president’s upcoming travel to the Middle East next week, urging him to take an active role in pressing for humanitarian aid and a return to ceasefire negotiations between Israel and Hamas in order to ensure Israel’s security and end more than 15 months of devastating conflict in Gaza.
When Trump took office, the January 15 ceasefire deal negotiated under the presidential transition of the Biden administration was in effect — 30 Israeli hostages were reunited with their families, Hamas’ military capacity had been effectively obliterated, and humanitarian aid was reaching Gaza. In the months since Trump’s inauguration, however, negotiations towards long-term regional security have collapsed, and dozens of hostages remain imprisoned by Hamas.
Before next week’s visit, the senators wrote to President Trump that, “The United States is not providing much needed leadership to drive peace forward in the region.” President Trump’s planned visit to the region does not include a stop in Israel. He has chosen to conclude a truce with Houthi terrorists even as they pledge to continue striking Israel. He also appears to be turning a blind eye towards the core task of ensuring Israel’s security for today and for the long term.
In the letter, the senators described Gaza’s catastrophic humanitarian crisis under a months-long blockade of aid. More than 116,000 metric tons of food assistance have been stuck outside Gaza, and an estimated 90 percent of Gaza’s population face high levels of acute food and water insecurity. According to the United Nations, most civilians face emergency or crisis levels of hunger.
This week, Israel also announced its intent to expand military operations and pursue a long-term occupation of Gaza. “The announcement has already escalated tensions in the Middle East, once again threatening to engulf the volatile region in conflict,” the senators wrote. “The Houthis struck Israel’s Ben Gurion airport on May 4 and have vowed to further retaliate against the proposed occupation. Jordan, one of our most important regional security partners, is facing intensifying pressure amid continued public anger over Gaza. Saudi Arabia has made it clear there can be no progress towards normalization with Israel without a pathway toward Palestinian statehood.”
“Israel’s proposed occupation plans take us further away from permanently ending the Israel-Gaza war and upholding Israel’s security, both goals that you have promised to achieve under your administration,” the senators added.
Specifically, the senators asked Trump to press all parties to agree to a deal that:
Secures the immediate release of all remaining hostages;
Ushers in a ceasefire;
Works towards the creation of a security force backed by Arab partners to administer Gaza without Hamas; and
Creates a path toward a lasting solution that will allow the Israeli and Palestinian people to live in security, dignity, and prosperity.
The senators ended the letter by reaffirming their unequivocal commitment to Israel’s security and its right to defend itself.
“It has been nearly 20 months since Hamas murdered more than 1,200 people and took about 250 hostages, including American citizens,” the senators concluded. “This period has also been marked by severe humanitarian suffering of civilians in Gaza, where more than 52,000 Palestinians have been killed and millions displaced. All of us are longstanding advocates of the U.S.-Israel security partnership, and we will continue to fight for the defense of the Israeli people. That is why, today, we stand with the nearly three-quarters of the Israeli public who are fighting for the release of the remaining hostages in Gaza in exchange for a ceasefire.”
The letter was is by U.S. Senators Chris Coons (D-Del.), Jeanne Shaheen (D-N.H.), Jack Reed (D-R.I.), Mark Warner (D-Va.), and Brian Schatz (D-Hawaii). Alongside Heinrich, the letter is signed by U.S. Senators Tammy Baldwin (D-Wis.), Michael Bennet (D-Colo.), Lisa Blunt Rochester (D-Del.), Cory Booker (D-N.J.), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), Mazie Hirono (D-Hawaii), Tim Kaine (D-Va.), Mark Kelly (D-Ariz.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), Edward Markey (D-Mass.), Jeff Merkley (D-Ore.), Patty Murray (D-Wash.), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), and Sheldon Whitehouse (D-R.I.).
The full text of the letter is here and below:
Dear President Trump:
When you took office in January 2025, we were on a path to peace in the Israel-Gaza conflict, thanks in part to your team’s efforts during the Presidential transition. A ceasefire was in effect and 30 hostages were reunited with their families. Hamas’s military capacity had been effectively obliterated, with the IDF calling it a “guerilla terror group” that could no longer mount a sustained military operation against the people of Israel – a testament to both Israel’s military prowess and the United States’ unflinching support. But today, the United States is not providing critically needed leadership to drive peace forward, which is why we write to express our deep concern in advance of your upcoming travel to the Middle East.
Since March of this year, the situation on the ground has deteriorated dramatically. Fighting in Gaza has resumed, negotiations towards long-term regional security have collapsed, and dozens of hostages remain imprisoned by Hamas. In fact, we have not had a single hostage return home since February 26. In addition, we are witnessing a humanitarian catastrophe in the third month of Israel’s full blockade of food, water, and medicine into Gaza. This is the longest closure Gaza has ever faced. While the World Food Program ran out of food stocks inside Gaza on April 25, they report that more than 116,000 metric tons of food assistance – enough to feed one million people for up to four months – has been positioned outside Gaza at aid corridors, unable to enter. According to the United Nations, an estimated 90 percent of Gaza’s population faces high levels of acute food and water insecurity, with most civilians facing emergency or crisis levels of hunger. Against this backdrop, the Israeli government’s new aid proposal is simply not viable. It would limit aid distribution to just a few sites in southern Gaza secured by private U.S. contractors, and nearly all aid groups operating in the region note this would only increase insecurity and displacement. Roughly half of Gaza’s 2.1 million people are children; a generation of starving children today would prevent a secure and peaceful Israel tomorrow.
This week, the Israeli government announced a plan to expand military operations and pursue a sustained, long-term occupation of Gaza. This is a dangerous inflection point for Israel and the region, and while we support ongoing efforts to eliminate Hamas, a full-scale reoccupation of Gaza would be a critical strategic mistake. The announcement has already escalated tensions in the Middle East, once again threatening to engulf the volatile region in conflict. The Houthis struck Israel’s Ben Gurion airport on May 4 and have vowed to further retaliate against the proposed occupation. Jordan, one of our most important regional security partners, is facing intensifying pressure amid continued public anger over Gaza. Saudi Arabia has made it clear there can be no progress towards normalization with Israel without a pathway toward Palestinian statehood. In this context, Israel’s planned actions would severely undermine Jerusalem’s path to a more secure, stable and regionally integrated future, which you championed in your first term through the Abraham Accords.
Israel’s proposed occupation plans take us further away from permanently ending the Israel-Gaza war and upholding Israel’s security, both goals that you have promised to achieve under your administration. As such, in advance of your upcoming visit, we urge you to oppose a permanent reoccupation of Gaza and to press for the immediate resumption of neutral and impartial humanitarian assistance, access, and distribution that fully meets the needs of innocent Palestinian civilians in Gaza.
You also have a unique opportunity to press the parties to agree to a deal that:
(1) secures the immediate release of all remaining hostages;
(2) ushers in a ceasefire;
(3) works towards the creation of a security force backed by Arab partners to administer Gaza without Hamas; and
(4) creates a path towards a lasting solution that will allow the Israeli and Palestinian people to live in security, dignity, and prosperity.
Mr. President, like you, we are unequivocal in our commitment to Israel’s right to defend itself. It has been nearly 20 months since Hamas murdered more than 1,200 people and took about 250 hostages, including American citizens. This period has also been marked by severe humanitarian suffering in Gaza, where more than 52,000 Palestinians have been killed and millions displaced. All of us are longstanding advocates of the U.S.-Israel security partnership, and we will continue to fight for the defense of the Israeli people. That is why, today, we stand with the nearly threequarters of the Israeli public who are fighting for the release of the remaining hostages in Gaza in exchange for a ceasefire.
Source: United States House of Representatives – Representative Eric Burlison (R-Missouri 7th District)
WASHINGTON—Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs Chairman Eric Burlison (R-Mo.) and Subcommittee on Health Care and Financial Services Chairman Glenn Grothman (R-Wis.) announced a joint hearing on “Mandates, Meddling, and Mismanagement: The IRA’s Threat to Energy and Medicine.” This hearing will highlight how the Biden Administration used the Inflation Reduction Act (IRA) as a tool to raise taxes on businesses, increase environmental spending, and imperil Medicare premiums. The IRA politicized spending to fund the partisan “Green New Deal” and subsidized the “green” energy purchases of wealthy households while the Biden Administration overlooked waste, fraud, and abuse in funding streams to left-wing groups.
“The IRA has wasted billions of taxpayer funds to advance the Democrats’ radical climate agenda and restrict Medicare plan choices for Americans who need it most. The IRA’s energy subsidies and Medicare premium hikes could now cost American taxpayers trillions over the next 10 years unless Congress takes action to stop it. This hearing will expose wasteful spending under the IRA and investigate the ways Congress can protect taxpayer dollars from being spent on misguided, partisan priorities,” said the lawmakers.
WHAT: Hearing on “Mandates, Meddling, and Mismanagement: The IRA’s Threat to Energy and Medicine”
DATE: May 20, 2025
TIME: 10:00 a.m. ET
LOCATION: HVC-210, U.S. Capitol Visitor Center
WITNESSES:
WATCH: The hearing will be livestreamed here.
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US Senate News:
Source: United States Senator for Massachusetts Ed Markey
Resolution Text (PDF)
Washington (May 13, 2025) – Last week, the Senate unanimously passed a resolution led by Senator Edward J. Markey (D-Mass.) and Senator Susan Collins (R-Maine), members of the Health, Education, Labor, and Pensions (HELP) Committee, designating April as “Community College Month.” The resolution recognizes the importance of community colleges as sources of education, opportunity, and economic mobility. More than 1,000 public, tribal, and independent community colleges serve almost half of all undergraduate students in the United States. Representatives Joe Courtney (CT-02) and Gus Bilirakis (FL-12) introduced a companion resolution in the House of Representatives.
“Massachusetts community colleges are of and for the community – delivering affordable, high-quality education to students where they live and work. When we invest in them, we are investing in people, families, neighborhoods, and their futures,” said Senator Markey. “I am proud to reintroduce my resolution designating April as Community College Month in recognition of their essential contributions to our students, to building our workforce, and to driving economic opportunity and mobility.”
“Maine’s community colleges play an important role in shaping our future workforce and providing students with the skills they need to prepare for rewarding careers in industries such as manufacturing, agriculture, cybersecurity, and health care,” said Senator Collins. “This bipartisan resolution celebrates the hard work of faculty at the more than 1,000 community colleges throughout our country and reaffirms our commitment to increasing access to higher education and workforce training.”
“For decades, community colleges have opened the door to quality, higher education for students, regardless of their family’s income,” said Congressman Courtney. “Community colleges are particularly critical to students and employers in eastern Connecticut where our economy is growing faster than any other region in the state. With so many new, good-paying jobs available, community colleges are well-situated to prepare workers with the skills they need to succeed. I look forward to working with my colleagues to protect resources for community colleges and ensure they can continue delivering on their mission.”
“Community Colleges empower students of all ages with the tools, industry certifications and hands-on skills they need to be successful in high wage jobs that are in demand throughout the country. The skilled workforce they help create serves as a catalyst for fueling our nation’s economic engine,” said Congressman Gus Bilirakis who serves as Co-Chairman of the Community College Congressional Caucus. “This Community College Month, we celebrate the success of these fine educational institutions and the positive impact they have on the lives of millions of Americans.”
“The Commonwealth’s 15 community colleges are grateful to Congress for recognizing April as Community College Month,” said Nate Mackinnon, Executive Director of the Massachusetts Association of Community Colleges. “Our community colleges offer an open access education to all, regardless of their goals. We are proud to be part of our local communities and partners in educating employees in high-demand industries across Massachusetts.”
Community colleges play a crucial role in workforce development across the United States, providing an affordable pathway to further education for all students, including nontraditional, low-income, working, parenting, veteran, and first-generation students. For more than a century, community colleges have contributed to prosperity and economic mobility, and they are vitally important to the economic future of the United States.
The Senate resolution is cosponsored by Senators Richard Blumenthal (D-Conn.), Maggie Hassan (D-N.H.), Dick Durbin (D-Ill.), Mazie Hirono (D-Hawai’i), Jim Risch (R-Idaho), Martin Heinrich (D-N.M.), Peter Welch (D-Vt.), Amy Klobuchar (D-Minn.), Chris Van Hollen (D-Md.), Alex Padilla (D-Calif.), Bernie Sanders (I-Vt.), Ron Wyden (D-Ore.), Angus King (I-Maine), Mike Crapo (R-Idaho), and Lisa Blunt Rochester (D-Del.).
US Senate News:
Source: United States Senator for Massachusetts Ed Markey
Washington (May 13, 2025) – Senator Edward J. Markey (D-Mass.), a member of the Health, Education, Labor, and Pensions Committee, along with Democratic Whip Katherine Clark (MA-05) and Representative Ayanna Pressley (MA-07), today condemned the Trump Administration’s cancelation of $450 million in federal grants to Harvard University, including all grants from the National Science Foundation. In fiscal year 2024, Harvard University received $56 million in National Science Foundation grants. This announcement is the next in a series of illegal and authoritarian Trump administration attacks on Harvard, including freezing $2.2 billion of federal funding and blocking all future research grants to Harvard.
“Yet again, the Trump administration is flouting the Constitution and laws passed by Congress in an authoritarian attempt to intimidate Harvard University into complying with its political demands. The Trump administration is demonstrating astonishing disregard for not only the students, faculty, and staff that these cuts impact, but also for the general public who benefit from scientific breakthroughs and the global standing of the United States. This is a blatant and condemnable strike against freedom, and we stand by Harvard University in their fight against authoritarian overreach by Trump.”
US Senate News:
Source: United States Senator for New Jersey Cory Booker
WASHINGTON, D.C. — Today, U.S. Senators Cory Booker (D-NJ) and Elizabeth Warren (D-MA), along with U.S. Representative Jerry Nadler (D-NY), wrote to Ramon Laguarta, CEO of PepsiCo, Inc. (Pepsi) demanding an explanation for the company’s potentially illegal price discrimination against small and independent grocery stores. The lawmakers are the top Democrats on the Senate Judiciary Subcommittee on Antitrust, Competition Policy, and Consumer Rights, Senate Committee on Banking, Housing, and Urban Affairs, and House Judiciary Subcommittee on the Administrate State, Regulatory Reform, and Antitrust, respectively.
In recent months, Pepsi has faced legal action from convenience stores and the Federal Trade Commission (FTC), a government regulator responsible for enforcing federal consumer protection laws and antitrust laws. In January 2025, the FTC sued Pepsi, accusing it of violating the Robinson-Patman Act (RPA), which prohibits sellers from engaging in anticompetitive price discrimination. The FTC claimed that for years, Pepsi has disadvantaged retailers – including local convenience stores – by consistently giving benefits and advantages, such as promotional payments, to a big-box store, while denying those same benefits to the store’s competitors.
In February 2025, two small, family-owned convenience stores accused Pepsi and its subsidiary Frito-Lay of violating the RPA, claiming the corporation charged independent retailers more “for identical bags of snack chips” compared to what it charged chain stores. The plaintiffs claimed they were charged as much as 50 percent more for those goods, and that the “discriminatory pricing” forced them to pass on the higher costs to consumers.
“The Robinson-Patman Act is an important tool for the FTC to combat illegal price discrimination and concentration, and to provide a level playing field to all businesses…Charging discriminatory, high prices to smaller, independent retailers harms those retailers’ ability to compete, and often forces consumers to endure unfair price increases,” wrote the lawmakers.
The RPA forbids sellers from charging competing buyers different prices for the same goods when the price discrimination may lessen or harm competition. The law also prohibits special promotional payments, discounts, rebates, allowances, or services to one buyer unless they are made available to all competing buyers.
“As food prices remain sky-high, the FTC should continue to enforce the RPA to promote fair competition in the food industry,” urged the lawmakers.
The bicameral coalition asked Pepsi to explain, by May 25, 2025, its pricing strategies, any discrepancies between what it charges chain retailers and small, independent retailers, how these price discrepancies affect shopping options for consumers, and the company’s lobbying efforts to refute price discrimination allegations.
To read the full text of the letter, click here.
US Senate News:
Source: United States Senator for Kentucky Mitch McConnell
WASHINGTON, D.C. – U.S. Senator Mitch McConnell (R-KY) released the following statement today regarding the passing of former U.S. Senator for Missouri, Christopher “Kit” Bond:
“Elaine and I were saddened to learn of the passing of our good friend, Kit Bond. Over four terms together in the Senate, I had a front row seat as one of the Senate’s most relentless and effective legislators built coalitions and made a difference – from agricultural innovation to intelligence oversight. Kit wore his devotion to his fellow Missourians on his sleeve, and made no secret of his belief in the importance of American leadership abroad.
“I will miss Kit’s uncompromising advocacy for investment in America’s military strength and engagement with allies and partners in critical regions. Considering the challenges we face today, his longtime focus on southeast Asia was prescient.
“But most of all, Elaine and I will miss Kit’s warm friendship. And today, our prayers and deepest sympathies are with Kit’s wife, Linda, his son, Sam, and his entire family as they say farewell to a great and good man.”
Source: Federal Bureau of Investigation FBI Crime News (b)
May 12, 2025 – Today, the Department of Justice announced the results of Operation Restore Justice, a coordinated enforcement effort to identify, track and arrest child sex predators. The operation resulted in the rescue of 115 children and the arrests of 205 child sexual abuse offenders in the nationwide crackdown. The coordinated effort was executed over the course of five days by all 55 FBI field offices, the Child Exploitation and Obscenity Section in the Department’s Criminal Division, and United States Attorney’s Offices around the country.
Two individuals were arrested in the Southern District of Georgia. To date, both have been charged federally.
Michael Alexander James, 44, of Waynesboro, GA and Martin Lindner, 52, of Augusta, GA were both charged in newly unsealed federal indictments with one count of Possession of Child Pornography, said Tara M. Lyons, Acting U.S. Attorney for the Southern District of Georgia.
“The Department of Justice will never stop fighting to protect victims — especially child victims — and we will not rest until we hunt down, arrest, and prosecute every child predator who preys on the most vulnerable among us,” said Attorney General Pamela Bondi. “I am grateful to the FBI and their state and local partners for their incredible work in Operation Restore Justice and have directed my prosecutors not to negotiate.”
“Every child deserves to grow up free from fear and exploitation, and the FBI will continue to be relentless in our pursuit of those who exploit the most vulnerable among us,” said FBI Director Kash Patel. “Operation Restore Justice proves that no predator is out of reach and no child will be forgotten. By leveraging the strength of all our field offices and our federal, state and local partners, we’re sending a clear message: there is no place to hide for those who prey on children.”
“Possessing child pornography perpetuates the victimization of child sexual abuse survivors,” said Acting U.S. Attorney Lyons. “As exemplified in Operation Restore Justice, we will continue to collaborate with our law enforcement partners to protect our most vulnerable citizens.”
Others arrested around the country are alleged to have committed various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. In Minneapolis, for example, a state trooper and Army Reservist was arrested for allegedly producing child sexual abuse material while wearing his uniforms. In Norfolk, VA, an illegal alien from Mexico is accused of transporting a minor across state lines for sex. In Washington, D.C., a former Metropolitan Police Department Police Officer was arrested for allegedly trafficking minor victims.
In many cases, parental vigilance and community outreach efforts played a critical role in bringing these offenders to justice. For example, a California man was arrested eight hours after a young victim bravely came forward and disclosed their abuse to FBI agents after an online safety presentation at a school near Albany, N.Y.
This effort follows the Department’s observance of National Child Abuse Prevention Month in April, and underscores the Department’s unwavering commitment to protecting children and raising awareness about the dangers they face. While the Department, including the FBI, investigates and prosecutes these crimes every day, April serves as a powerful reminder of the importance of preventing these crimes, seeking justice for victims, and raising awareness through community education.
The Justice Department is committed to combating child sexual exploitation. These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
The Department partners with and oversees funding grants for the National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org.
The Department urges the public to remain vigilant and report suspected exploitation of a child through the FBI’s tipline at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.
Other online resources:
Electronic Press Kit
Violent Crimes Against Children
How we can help you: Parents and caregivers protecting your kids
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Source: GlobeNewswire (MIL-OSI)
THE WOODLANDS, Texas, May 13, 2025 (GLOBE NEWSWIRE) — – Total Revenues increased 16.6% for the quarter over the prior year period to $53.8 million –
– Total Written Premium increased 15.5% for the quarter over the prior year period to $371.0 million –
– Organic Revenue Growth Rate* of 14.3% for the quarter –
– Net income of $6.9 million for the quarter –
– Adjusted EBITDA* increased 35.3% for the quarter over the prior year period to $12.2 million –
THE WOODLANDS, Texas, May 13, 2025 (GLOBE NEWSWIRE) – TWFG, Inc. (“TWFG”, the “Company” or “we”) (NASDAQ: TWFG), a high-growth insurance distribution company, today announced results for the first quarter ended March 31, 2025.
First Quarter 2025 Highlights
*Organic Revenue Growth Rate, Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Adjusted Diluted Earnings Per Share are non-GAAP measures. Reconciliations of Organic Revenue Growth Rate to total revenue growth rate, Adjusted Net Income and Adjusted EBITDA to net income, Adjusted Diluted Earnings Per Share to diluted earnings per share, and Adjusted Free Cash Flow to cash flow from operating activities, the most directly comparable financial measures presented in accordance with GAAP, are outlined in the reconciliation table accompanying this release.
Gordy Bunch, Founder, Chairman, and CEO said “Our strong first quarter performance reflects the continued execution of our strategy and strength of our business model. Total revenues grew 16.6% year-over-year, and Adjusted EBITDA increased by 35.3%, and Adjusted EBITDA Margin expansion grew to 22.6%. Organic Revenue Growth of 14.3% underscores the productivity of our agents and the enduring value we deliver to our carrier partners and clients.
Our recruiting momentum remains robust as we continue to expand our national footprint. During the quarter, we completed the acquisition of two new corporate locations, one in Ohio and one in Texas, expanded into New Hampshire, and added 17 branches across the U.S. The new locations are in line with our acquisition expectations for both revenue and EBITDA.
As a reminder to our shareholders, newly onboarded agents typically take two to three years to reach full productivity.”
First Quarter 2025 Results
Total Written Premium for the first quarter of 2025 was $371.0 million, representing an increase of 15.5% compared to the prior year period. Total revenues were $53.8 million, an increase of 16.6% year-over-year.
Organic Revenue, a non-GAAP measure that excludes contingent income, non-policy fee income, and other income, was $49.2 million for the first quarter of 2025, compared to $41.6 million in the prior year period. Organic Revenue Growth Rate was 14.3%, driven by robust new business production, moderating retention levels, rate increases, and continued growth in new business activity within one of our managing general agency (MGA) programs.
Commission expense for the quarter totaled $31.8 million, an increase of 20.3% compared to $26.4 million in the prior year period. This increase reflects the continued growth of our business, partially offset by the one-time favorable adjustment in prior year period due to the branch conversions.
Salaries and employee benefits were $8.2 million, an increase of 31.1% compared to $6.3 million in the first quarter of 2025. The increase includes $1.2 million of equity compensation expense and $0.7 million related to increased headcount and overall business growth.
Other administrative expenses were $4.7 million in the quarter, up 50.9% from the prior year period. The increase reflects investments to support business growth and the absorption of public company operating costs.
Net income for the first quarter of 2025 was $6.9 million, compared to $6.6 million in the prior year period. Net income margin was 12.7%, compared to 14.4% a year ago. Adjusted Net Income was $9.2 million for the quarter, compared to $8.1 million in the same period last year. Adjusted Net Income Margin was 17.1%, versus 17.5% in the prior year period.
Adjusted EBITDA was $12.2 million for the first quarter, an increase of 35.3% year-over-year. Adjusted EBITDA Margin expanded to 22.6%, compared to 19.5% in the first quarter of 2024.
Cash flow from operating activities was $15.6 million, up from $9.8 million in the prior year period. Adjusted Free Cash Flow for the quarter was $13.6 million, compared to $7.3 million in the same period a year ago.
Liquidity and Capital Resources
As of March 31, 2025, the Company had cash and cash equivalents of $196.4 million. We had full unused capacity on our revolving credit facility of $50.0 million as of March 31, 2025. The total outstanding term notes payable balance was $5.4 million as of March 31, 2025.
2025 Adjusted Outlook
Based on our strong first quarter results, the Company has updated its full-year 2025 guidance by raising the range of the outlook across all key metrics to reflect the improved visibility and confidence in the Company’s execution.
The Company is unable to provide a reconciliation to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting the timing of items that have not yet occurred, as well as quantifying certain amounts that are necessary for such reconciliation.
*For a definition of Organic Revenue Growth Rate and Adjusted EBITDA Margin, see “Non-GAAP Financial Measures” below.
Conference Call Information
TWFG will host a conference call and webcast tomorrow at 9:00 AM ET to discuss these results.
To access the call by phone, participants should register at this link, where they will be provided with the dial in details. A live webcast of the conference call will also be available on TWFG’s investor relations website at investors.twfg.com. A webcast replay of the call will be available at investors.twfg.com for one year following the call.
About TWFG
TWFG (NASDAQ: TWFG) is a high-growth, independent distribution platform for personal and commercial insurance in the United States and represents hundreds of insurance carriers that underwrite personal lines and commercial lines risks. For more information, please visit twfg.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “outlook,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the captions entitled “Risk factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the U.S. Securities and Exchange Commission. You should specifically consider the numerous risks outlined under “Risk factors” in the Annual Report on Form 10-K for the year ended December 31, 2024.
Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Non-GAAP Financial Measures and Key Performance Indicators
Non-GAAP Financial Measures
Organic Revenue, Organic Revenue Growth, Adjusted Net Income, Adjusted Net Income Margin, Adjusted Diluted Earnings Per Share, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow included in this release are not measures of financial performance in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and should not be considered substitutes for GAAP measures, including revenues (for Organic Revenue and Organic Revenue Growth), net income (for Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin), diluted earnings per share (Adjusted Diluted Earnings Per Share), and cash flow from operating activities (for Adjusted Free Cash Flow), which we consider to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for revenues, net income, operating cash flow or other consolidated financial statement data prepared in accordance with GAAP. Other companies may calculate any or all of these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.
Organic Revenue. Since the first quarter of 2025, we have utilized the revised calculation methodology for Organic Revenue to include policy fee income as it is directly correlated to MGA commission income. Our legacy calculation methodology removed policy fee income from Organic Revenue. Organic Revenue is total revenue (the most directly comparable GAAP measure) for the relevant period, excluding contingent income, non-policy fee income, other income and those revenues generated from acquired businesses with over $0.5 million in annualized revenue that have not reached the twelve-month owned mark.
Organic Revenue Growth. Organic Revenue Growth is the change in Organic Revenue period-to-period, with prior period results adjusted to include revenues that were excluded in the prior period because the relevant acquired businesses had not reached the twelve-month-owned milestone but have reached the twelve-month owned milestone in the current period. We believe Organic Revenue Growth is an appropriate measure of operating performance because it eliminates the impact of acquisitions, which affects the comparability of results from period to period.
Adjusted Net Income. Adjusted Net Income is a supplemental measure of our performance and is defined as net income (the most directly comparable GAAP measure) before amortization, non-recurring or non-operating income and expenses, including equity-based compensation, adjusted to assume a single class of stock (Class A) and assuming noncontrolling interests do not exist. We believe Adjusted Net Income is a useful measure because it adjusts for the after-tax impact of significant one-time, non-recurring items and eliminates the impact of any transactions that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.
We are subject to U.S. federal income taxes, in addition to state, and local taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. Adjusted Net Income pre-IPO did not reflect adjustments for income taxes since TWFG Holding Company, LLC is a limited liability company and is classified as a partnership for U.S. federal income tax purposes. Post-IPO, the calculation incorporates the impact of federal and state statutory tax rates on 100% of our adjusted pre-tax income as if the Company owned 100% of TWFG Holding Company, LLC.
Adjusted Net Income Margin. Adjusted Net Income Margin is Adjusted Net Income divided by total revenues. We believe that Adjusted Net Income Margin is a useful measurement of operating profitability for the same reasons we find Adjusted Net Income useful and also because it provides a period-to-period comparison of our after-tax operating performance.
Adjusted Diluted Earnings Per Share. Adjusted Diluted Earnings Per Share is Adjusted Net Income divided by diluted shares outstanding after adjusting for the effect of (i) the exchange of 100% of the outstanding Class B common stock of the Company (the “Class B Common Stock”) and Class C common stock of the Company (the “Class C Common Stock”) (together with the related limited liability units in TWFG Holding Company, LLC (the “LLC Units”)) into shares of Class A common stock of the Company (“Class A Common Stock”) and (ii) the vesting of 100% of the unvested equity awards and exchange into shares of Class A Common Stock. This measure does not deduct earnings related to the noncontrolling interests in TWFG Holding Company, LLC for the period prior to July 19, 2024, when we did not own 100% of the business. The most directly comparable GAAP financial metric is diluted earnings per share. We believe Adjusted Diluted Earnings Per Share may be useful to an investor in evaluating our operating performance and efficiency because this measure is widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon acquisition activity and capital structure. This measure also eliminates the impact of expenses that do not relate to core business performance, among other factors.
Adjusted EBITDA. Adjusted EBITDA is a supplemental measure of our performance and is defined as EBITDA adjusted to reflect items such as equity-based compensation, interest income, other non-operating and certain nonrecurring items. EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation, and amortization. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it adjusts for significant one-time, non-recurring items and eliminates the ongoing accounting effects of certain capital spending and acquisitions, such as depreciation and amortization, that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. Our measure of Adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.
Adjusted EBITDA Margin. Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenue. We believe that Adjusted EBITDA Margin is a useful measurement of operating profitability for the same reasons we find Adjusted EBITDA useful and also because it provides a period-to-period comparison of our operating performance.
Adjusted Free Cash Flow. Adjusted Free Cash Flow is a supplemental measure of our performance. We define Adjusted Free Cash Flow as cash flow from operating activities (the most directly comparable GAAP measure) less cash payments for tax distributions, purchases of property and equipment and acquisition-related costs. We believe Adjusted Free Cash Flow is a useful measure of operating performance because it represents the cash flow from the business that is within our discretion to direct to activities including investments, debt repayment, and returning capital to stockholders.
The reconciliation of the above non-GAAP measures to their most comparable GAAP financial measure is outlined in the reconciliation table accompanying this release.
Key Performance Indicators
Total Written Premium. Total Written Premium represents, for any reported period, the total amount of current premium (net of cancellation) placed with insurance carriers. We utilize Total Written Premium as a key performance indicator when planning, monitoring, and evaluating our performance. We believe Total Written Premium is a useful metric because it is the underlying driver of the majority of our revenue.
Contacts
Investor Contact:
Gene Padgett, CAO for TWFG
Email: gene.padgett@twfg.com
PR Contact:
Alex Bunch, CMO for TWFG
Email: alex@twfg.com
Condensed Consolidated Statements of Income (Unaudited)
(Amounts in thousands, except share and per share data)
| Three Months Ended March 31, |
||||||||
| 2025 | 2024 | |||||||
| Revenues | ||||||||
| Commission income(1) | $ | 48,785 | $ | 42,545 | ||||
| Contingent income | 1,663 | 1,076 | ||||||
| Fee income(2) | 3,011 | 2,232 | ||||||
| Other income | 364 | 290 | ||||||
| Total revenues | 53,823 | 46,143 | ||||||
| Expenses | ||||||||
| Commission expense | 31,814 | 26,443 | ||||||
| Salaries and employee benefits | 8,196 | 6,254 | ||||||
| Other administrative expenses(3) | 4,724 | 3,130 | ||||||
| Depreciation and amortization | 3,359 | 3,013 | ||||||
| Total operating expenses | 48,093 | 38,840 | ||||||
| Operating income | 5,730 | 7,303 | ||||||
| Interest expense | 83 | 842 | ||||||
| Interest income | 1,863 | 170 | ||||||
| Other non-operating expense | 1 | 2 | ||||||
| Income before tax | 7,509 | 6,629 | ||||||
| Income tax expense | 656 | — | ||||||
| Net income | 6,853 | 6,629 | ||||||
| Less: net income attributable to noncontrolling interests | 5,515 | 6,629 | ||||||
| Net income attributable to TWFG, Inc. | 1,338 | — | ||||||
| Weighted average shares of common stock outstanding: | ||||||||
| Basic | 14,889,739 | |||||||
| Diluted | 15,055,553 | |||||||
| Earnings per share: | ||||||||
| Basic | $ | 0.09 | ||||||
| Diluted | $ | 0.09 | ||||||
(1) Commission income – related party of $3,135 and $1,109 for the three months ended March 31, 2025 and 2024, respectively
(2) Fee income – related party of $834 and $354 for the three months ended March 31, 2025 and 2024, respectively
(3) Other administrative expenses – related party of $770 and $401 for the three months ended March 31, 2025 and 2024, respectively
The following table presents the disaggregation of our revenues by offerings (in thousands):
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Insurance Services | ||||||||
| Agency-in-a-Box | $ | 35,996 | $ | 31,729 | ||||
| Corporate Branches | 8,223 | 7,276 | ||||||
| Total Insurance Services | 44,219 | 39,005 | ||||||
| TWFG MGA | 9,195 | 6,794 | ||||||
| Other | 409 | 344 | ||||||
| Total revenues | $ | 53,823 | $ | 46,143 | ||||
The following table presents the disaggregation of our commission income by offerings (in thousands):
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Insurance Services | ||||||||
| Agency-in-a-Box | $ | 33,358 | $ | 29,900 | ||||
| Corporate Branches | 8,214 | 7,250 | ||||||
| Total Insurance Services | 41,572 | 37,150 | ||||||
| TWFG MGA | 7,213 | 5,395 | ||||||
| Total commission income | $ | 48,785 | $ | 42,545 | ||||
The following table presents the disaggregation of our fee income by major sources (in thousands):
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Policy fees | $ | 1,051 | $ | 513 | ||||
| Branch fees | 1,256 | 1,131 | ||||||
| License fees | 608 | 515 | ||||||
| TPA fees | 96 | 73 | ||||||
| Total fee income | $ | 3,011 | $ | 2,232 | ||||
The following table presents the disaggregation of our commission expense by offerings (in thousands):
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Insurance Services | ||||||||
| Agency-in-a-Box | $ | 25,954 | 22,028 | |||||
| Corporate Branches | 1,105 | 862 | ||||||
| Total Insurance Services | 27,059 | 22,890 | ||||||
| TWFG MGA | 4,726 | 3,535 | ||||||
| Other | 29 | 18 | ||||||
| Total commission expense | $ | 31,814 | $ | 26,443 | ||||
Condensed Consolidated Balance Sheets (Unaudited)
(Amounts in thousands, except share/unit data)
| March 31, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 196,424 | $ | 195,772 | ||||
| Restricted cash | 11,853 | 9,551 | ||||||
| Commissions receivable, net | 23,575 | 27,067 | ||||||
| Accounts receivable | 8,053 | 7,839 | ||||||
| Other current assets, net | 1,500 | 1,619 | ||||||
| Total current assets | 241,405 | 241,848 | ||||||
| Non-current assets | ||||||||
| Intangible assets, net | 80,919 | 72,978 | ||||||
| Property and equipment, net | 3,364 | 3,499 | ||||||
| Lease right-of-use assets, net | 4,307 | 4,493 | ||||||
| Other non-current assets | 535 | 610 | ||||||
| Total assets | $ | 330,530 | $ | 323,428 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities | ||||||||
| Commissions payable | $ | 16,303 | $ | 13,848 | ||||
| Carrier liabilities | 14,710 | 12,392 | ||||||
| Operating lease liabilities, current | 1,124 | 1,013 | ||||||
| Short-term bank debt | 1,927 | 1,912 | ||||||
| Deferred acquisition payable, current | 1,956 | 601 | ||||||
| Other current liabilities | 6,842 | 9,851 | ||||||
| Total current liabilities | 42,862 | 39,617 | ||||||
| Non-current liabilities | ||||||||
| Operating lease liabilities, net of current portion | 3,119 | 3,372 | ||||||
| Long-term bank debt | 3,519 | 4,007 | ||||||
| Deferred acquisition payable, non-current | 973 | 1,122 | ||||||
| Other non-current liabilities | — | 24 | ||||||
| Total liabilities | 50,473 | 48,142 | ||||||
| Commitment and contingencies (see Note 14) | ||||||||
| Stockholders’/Members’ Equity | ||||||||
| Class A common stock ($0.01 par value per share – 300,000,000 authorized, 14,904,083 and 14,811,874 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively ) | 149 | 148 | ||||||
| Class B common stock ($0.00001 par value per share – 100,000,000 authorized, 7,277,651 shares issued and outstanding at March 31, 2025 and December 31, 2024) | — | — | ||||||
| Class C common stock ($0.00001 par value per share – 100,000,000 authorized, 33,893,810 shares issued and outstanding at March 31, 2025 and December 31, 2024) | — | — | ||||||
| Additional paid-in capital | 58,374 | 58,365 | ||||||
| Retained earnings | 16,626 | 15,288 | ||||||
| Accumulated other comprehensive income | 65 | 83 | ||||||
| Total stockholders’ equity attributable to TWFG, Inc. | 75,214 | 73,884 | ||||||
| Noncontrolling interests | 204,843 | 201,402 | ||||||
| Total stockholders’ equity | 280,057 | 275,286 | ||||||
| Total liabilities and equity | $ | 330,530 | $ | 323,428 | ||||
Non-GAAP Financial Measures
A reconciliation of Organic Revenue and Organic Revenue Growth Rate to Total Revenue and Total Revenue Growth Rate, the most directly comparable GAAP measures, is as follows (in thousands):
| Revised Calculation Methodology Applied to Current Period | ||||||||
| Three Months Ended March 31, |
||||||||
| 2025 | 2024 | |||||||
| Total revenues | $ | 53,823 | $ | 46,143 | ||||
| Acquisition adjustments(1) | (610 | ) | (1,467 | ) | ||||
| Contingent income | (1,663 | ) | (1,076 | ) | ||||
| Fee income | (3,011 | ) | (2,232 | ) | ||||
| Policy fee income | 1,051 | 513 | ||||||
| Other income | (364 | ) | (290 | ) | ||||
| Organic Revenue | $ | 49,226 | $ | 41,591 | ||||
| Organic Revenue Growth(2) | $ | 6,169 | $ | 4,780 | ||||
| Total Revenue Growth Rate(3) | 16.6 | % | 15.8 | % | ||||
| Organic Revenue Growth Rate(2) | 14.3 | % | 13.0 | % | ||||
(1) Represents revenues generated from the acquired businesses during the first 12 months following an acquisition.
(2) Revised Organic Revenue for the three months ended March 31, 2024 and 2023, used to calculate Organic Revenue Growth for the three months ended March 31, 2025 and 2024, was $43.1 million and $36.8 million, respectively, which is adjusted to reflect revenues from acquired businesses with over $0.5 million in annualized revenue that reached the twelve-month owned mark during the three months ended March 31, 2025 and 2024, respectively. Organic Revenue Growth Rate represents the period-to-period change in Organic Revenue divided by the total adjusted Organic Revenue in the prior period.
(3) Represents the period-to-period change in total revenues divided by the total revenues in the prior period.
| Legacy Calculation Methodology Applied to Current Period | ||||||||
| Three Months Ended March 31, |
||||||||
| 2025 | 2024 | |||||||
| Total revenues | $ | 53,823 | $ | 46,143 | ||||
| Acquisition adjustments(1) | (610 | ) | (1,467 | ) | ||||
| Contingent income | (1,663 | ) | (1,076 | ) | ||||
| Fee income | (3,011 | ) | (2,232 | ) | ||||
| Other income | (364 | ) | (290 | ) | ||||
| Organic Revenue | $ | 48,175 | $ | 41,078 | ||||
| Organic Revenue Growth(2) | $ | 5,630 | $ | 4,822 | ||||
| Total Revenue Growth Rate(3) | 16.6 | % | 15.8 | % | ||||
| Organic Revenue Growth Rate(2) | 13.2 | % | 13.3 | % | ||||
(1) Represents revenues generated from the acquired businesses during the first 12 months following an acquisition.
(2) Organic Revenue for the three months ended March 31, 2024 and 2023, used to calculate Organic Revenue Growth for the three months ended March 31, 2025 and 2024, was $42.5 million and $36.3 million, respectively, which is adjusted to reflect revenues from acquired businesses with over $0.5 million in annualized revenue that reached the twelve-month owned mark during the three months ended March 31, 2025 and 2024, respectively. Organic Revenue Growth Rate represents the period-to-period change in Organic Revenue divided by the total adjusted Organic Revenue in the prior period.
(3) Represents the period-to-period change in total revenues divided by the total revenues in the prior period.
A reconciliation of Adjusted Net Income and Adjusted Net Income Margin to Net income and Net income Margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands):
| Revised Calculation Methodology Applied to Current Period | ||||||||
| Three Months Ended March 31, |
||||||||
| 2025 | 2024 | |||||||
| Total revenues | $ | 53,823 | $ | 46,143 | ||||
| Net income | $ | 6,853 | $ | 6,629 | ||||
| Income tax expense | 656 | — | ||||||
| Acquisition-related expenses | 33 | — | ||||||
| Equity-based compensation | 1,204 | — | ||||||
| Other non-recurring items(1) | — | (1,477 | ) | |||||
| Amortization expense | 3,210 | 2,917 | ||||||
| Adjusted income before income taxes | 11,956 | 8,069 | ||||||
| Adjusted income tax expense(2) | (2,736 | ) | — | |||||
| Adjusted Net Income | $ | 9,220 | $ | 8,069 | ||||
| Net Income Margin | 12.7 | % | 14.4 | % | ||||
| Adjusted Net Income Margin | 17.1 | % | 17.5 | % | ||||
| Legacy Calculation Methodology Applied to Current Period | ||||||||
| Three Months Ended March 31, |
||||||||
| 2025 | 2024 | |||||||
| Total revenues | $ | 53,823 | $ | 46,143 | ||||
| Net income | $ | 6,853 | $ | 6,629 | ||||
| Income tax expense | 656 | — | ||||||
| Acquisition-related expenses | 33 | — | ||||||
| Equity-based compensation | 1,204 | — | ||||||
| Other non-recurring items(1) | — | (1,477 | ) | |||||
| Adjusted income before income taxes | $ | 8,746 | $ | 5,152 | ||||
| Adjusted income tax expense(2) | (2,001 | ) | — | |||||
| Adjusted Net Income | $ | 6,745 | $ | 5,152 | ||||
| Net Income Margin | 12.7 | % | 14.4 | % | ||||
| Adjusted Net Income Margin | 12.5 | % | 11.2 | % | ||||
(1) Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.
(2) Post-IPO, we are subject to United States federal income taxes, in addition to state, local, and foreign taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. For the three months ended March 31, 2025, the calculation of adjusted income tax expense is based on a federal statutory rate of 21% and a blended state income tax rate of 1.88% on 100% of our adjusted income before income taxes as if we owned 100% of the TWFG Holding Company, LLC.
A reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to Net income and Net income margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands):
| Three Months Ended March 31, |
||||||||
| 2025 | 2024 | |||||||
| Total revenues | $ | 53,823 | $ | 46,143 | ||||
| Net income | $ | 6,853 | $ | 6,629 | ||||
| Interest expense | 83 | 842 | ||||||
| Interest income | (1,863 | ) | (170 | ) | ||||
| Depreciation and amortization | 3,359 | 3,013 | ||||||
| Income tax expense | 656 | — | ||||||
| EBITDA | 9,088 | 10,314 | ||||||
| Acquisition-related expenses | 33 | — | ||||||
| Equity-based compensation | 1,204 | — | ||||||
| Interest income | 1,863 | 170 | ||||||
| Other non-recurring items(1) | — | (1,477 | ) | |||||
| Adjusted EBITDA | $ | 12,188 | $ | 9,007 | ||||
| Net Income Margin | 12.7 | % | 14.4 | % | ||||
| Adjusted EBITDA Margin | 22.6 | % | 19.5 | % | ||||
(1) Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.
A reconciliation of Adjusted Free Cash Flow to Cash Flow from Operating Activities, the most directly comparable GAAP measure, for each of the periods indicated is as follows (in thousands):
| Three Months Ended March 31, |
||||||||
| 2025 | 2024 | |||||||
| Cash Flow from Operating Activities | $ | 15,645 | $ | 9,754 | ||||
| Purchase of property and equipment | (15 | ) | (8 | ) | ||||
| Tax distribution to members(1) | (2,024 | ) | (2,420 | ) | ||||
| Acquisition-related expenses | 33 | — | ||||||
| Adjusted Free Cash Flow | $ | 13,639 | $ | 7,326 | ||||
(1) Tax distributions to members represents the amount distributed to the members of TWFG Holding Company, LLC in respect of their income tax liability related to the net income of TWFG Holding Company, LLC allocated to its members.
A reconciliation of Adjusted Diluted Earnings Per Share to diluted earnings per share, the most directly comparable GAAP measure, is as follows:
| Three Months Ended March 31, | ||||
| 2025 | ||||
| Earnings per share of common stock – diluted | $ | 0.09 | ||
| Plus: Impact of all LLC Units exchanged for Class A Common Stock(1) | 0.03 | |||
| Plus: Adjustments to Adjusted net income(2) | 0.04 | |||
| Adjusted Diluted Earnings Per Share | $ | 0.16 | ||
| Weighted average common stock outstanding – diluted | 15,055,553 | |||
| Plus: Impact of all LLC Units exchanged for Class A Common Stock(1) | 41,171,461 | |||
| Adjusted Diluted Earnings Per Share diluted share count | 56,227,014 | |||
(1) For comparability purposes, this calculation incorporates the net income that would be distributable if all shares of Class B Common Stock and Class C Common Stock, together with the related LLC Units, were exchanged for shares of Class A Common Stock. For the three months ended March 31, 2025, this includes $5.5 million of net income on 56,227,014 weighted-average shares of common stock outstanding – diluted. For the three months ended March 31, 2025, 41,260,844 weighted average outstanding Class B Common Stock and Class C Common Stock were considered dilutive and included in the 56,227,014 weighted-average shares of common stock outstanding – diluted within diluted earnings per share calculation.
(2) Adjustments to Adjusted Net Income are described in the footnotes of the reconciliation of Adjusted Net Income to Net Income in “Adjusted Net Income and Adjusted Net Income Margin”, which represent the difference between Net Income of $6.9 million and Adjusted Net Income of $9.2 million for the three months ended March 31, 2025. For the three months ended March 31, 2025, Adjusted Diluted Earnings Per Share include adjustments of $2.4 million to Adjusted Net Income on 56,227,014 weighted-average shares of common stock outstanding – diluted for the period presented.
Key Performance Indicators
The following presents the disaggregation of Total Written Premium by offerings, business mix and line of business (in thousands):
| Three Months Ended March 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Amount | % of Total | Amount | % of Total | |||||||||||
| Offerings: | ||||||||||||||
| Insurance Services | ||||||||||||||
| Agency-in-a-Box | $ | 249,475 | 68 | % | $ | 218,936 | 68 | % | ||||||
| Corporate Branches | 68,098 | 18 | 57,884 | 18 | ||||||||||
| Total Insurance Services | 317,573 | 86 | 276,820 | 86 | ||||||||||
| TWFG MGA | 53,389 | 14 | 44,446 | 14 | ||||||||||
| Total written premium | $ | 370,962 | 100 | % | $ | 321,266 | 100 | % | ||||||
| Business Mix: | ||||||||||||||
| Insurance Services | ||||||||||||||
| Renewal business | $ | 244,845 | 66 | % | 214,477 | 67 | % | |||||||
| New business | 72,728 | 20 | 62,343 | 19 | ||||||||||
| Total Insurance Services | 317,573 | 86 | 276,820 | 86 | ||||||||||
| TWFG MGA | ||||||||||||||
| Renewal business | 36,375 | 9 | 35,464 | 11 | ||||||||||
| New business | 17,014 | 5 | 8,982 | 3 | ||||||||||
| Total TWFG MGA | 53,389 | 14 | 44,446 | 14 | ||||||||||
| Total written premium | $ | 370,962 | 100 | % | $ | 321,266 | 100 | % | ||||||
| Written Premium Retention: | ||||||||||||||
| Insurance Services | 88 | % | 97 | % | ||||||||||
| TWFG MGA | 82 | 81 | ||||||||||||
| Consolidated | 88 | 94 | ||||||||||||
| Line of Business: | ||||||||||||||
| Personal lines | $ | 298,289 | 80 | % | $ | 254,864 | 79 | % | ||||||
| Commercial lines | 72,673 | 20 | 66,402 | 21 | ||||||||||
| Total written premium | $ | 370,962 | 100 | % | $ | 321,266 | 100 | % | ||||||
Source: GlobeNewswire (MIL-OSI)
VANCOUVER, British Columbia, May 13, 2025 (GLOBE NEWSWIRE) — The Keg Royalties Income Fund (the “Fund”) (TSX: KEG.UN) is pleased to announce that all of the nominees listed in its information circular dated March 31, 2025 were elected as trustees of the Fund at its annual meeting of unitholders held on May 13, 2025 (the “Meeting”). The results of the voting for each nominee are as follows:
| Nominee | Votes For | Votes Withheld | ||||
| No. | % | No. | % | |||
| Christopher Charles Woodward | 8,173,330 | 93.26 | % | 590,798 | 6.74 | % |
| Tim Kerr | 8,299,010 | 94.69 | % | 465,118 | 5.31 | % |
In addition, the Fund reports that the appointment of KPMG LLP as the Fund’s auditors for the 2025 fiscal year was passed by a majority of the votes represented at the Meeting.
About The Keg Royalties Income Fund
The Fund is a limited purpose, open-ended trust established under the laws of the Province of Ontario that, through The Keg Rights Limited Partnership, a subsidiary of the Fund, owns certain trademarks and other related intellectual property used by Keg Restaurants Ltd. (“KRL”). In exchange for use of those trademarks, KRL pays the Fund a royalty of 4% of gross sales of Keg restaurants included in the royalty pool.
With approximately 10,000 employees, over 100 restaurants and annual system sales exceeding $700 million, Vancouver-based KRL is the leading operator and franchisor of steakhouse restaurants in Canada and has a substantial presence in select regional markets in the United States. KRL continues to operate The Keg restaurant system and expand that system through the addition of both corporate and franchised Keg steakhouses. KRL has been named the number one restaurant company to work for in Canada in the latest edition of Forbes “Canada’s Best Employers 2025” survey.
The Trustees of the Fund have approved the contents of this press release.
Source: United States House of Representatives – Congresswoman Elise Stefanik (21st District of New York)
Stefanik’s Bill Renaming Historic Site “Saratoga National Battlefield Park” Passes House | Press Releases | Congresswoman Elise Stefanik
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Source: United States House of Representatives – Congresswoman Elise Stefanik (21st District of New York)
ICYMI: Stefanik Delivers Remarks on Redesignating Saratoga National Historical Park as Saratoga National Battlefield Park | Press Releases | Congresswoman Elise Stefanik
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Source: United States House of Representatives – Representative Salud Carbajal (CA-24)
Today, U.S. Representative Salud Carbajal (D-CA-24) announced his bipartisan legislation to reduce wildfire risks passed the U.S. House of Representatives. Rep. Carbajal’sFire Safe Electrical Corridors Act would reduce the procedural steps needed for removing hazardous vegetation near power lines, cutting red tape to allow for a more streamlined process to combat wildfire risk.
U.S. Representatives David Valadao (R-CA-22), Jim Costa (D-CA-21), and Brian Fitzpatrick (R-PA-01) are co-sponsors of the legislation. U.S. Senators Alex Padilla (D-CA) and Steve Daines (R-MT) lead companion legislation in the Senate.
The Congressman spoke on the floor earlier today advocating for the passage of his bill. Watch the full speech here.
“The Western United States continues to experience catastrophic wildfires, and we need common-sense solutions that balance sustainable forest management practices with reducing wildfire risks,” said Rep. Carbajal. “My bipartisan bill strives to find this balance and is a common sense solution to protect our communities.”
“California is no stranger to destructive wildfires, and in the Central Valley, we live with the consequences,” said Rep. Valadao. “Far too often, bureaucratic red tape gets in the way of proper forest management, and it directly impacts air quality in the Valley. It shouldn’t be so hard to remove the dead trees we know make fires worse, and I’m glad to see this commonsense step toward reducing wildfire risk cross the finish line in the House.”
“As our communities continue to recover from devastating wildfires, the House took the right step by passing the Fire Safe Electrical Corridors Act to help prevent future disasters,” said Rep. Costa. “This legislation will cut red tape, streamline the removal of hazardous vegetation near power lines, and strengthen our infrastructure to better protect homes and businesses.”
“As Co-Chair of the Congressional Fire Services Caucus, I’ve worked to advance practical, prevention-first solutions to reduce wildfire risks. The House’s bipartisan passage of the Fire Safe Electrical Corridors Act is a meaningful step forward—cutting through red tape to allow for the safe removal of hazardous vegetation near power lines on federal lands. This commonsense measure will help protect lives, support our firefighters, and make our communities more resilient in the face of growing wildfire threats,” said Rep. Fitzpatrick.
“The catastrophic Southern California fires were a blaring warning call for smarter, proactive solutions to strengthen fire resilience across the country,” said Sen. Padilla. “Expediting the removal of hazardous fuels — like brush and other vegetation — near power lines is a commonsense, bipartisan solution to reduce the threats of catastrophic megafires that are devastating American communities. I am glad to see the House move our bipartisan bill forward and will continue exploring all avenues to keep California residents safe from the wildfire crisis.”
“Montanans are tired of breathing in smoke and this bill is a commonsense approach to addressing the root of the problem. I commend the House for passing this bipartisan legislation and thank Montana Representatives Ryan Zinke and Troy Downing for their support,” said Sen. Daines.
The legislation would allow the U.S. Forest Service or Bureau of Land Management to approve the removal of hazardous trees near power lines on federal land – including national forests like Los Padres National Forest – without requiring a timber sale, easing a serious threat that has in the past been a major cause of destructive wildfires.
Currently, utility companies are required to keep trees and branches away from powerlines on federal land. But fallen or dead trees cannot be cleared currently without a timber sale, creating an administrative step that can slow clearing of hazardous fuel and potential triggers for a wildfire on federal land.
The bill was adopted as an amendment to the bipartisan Fix Our Forests Act.
The bill was first introduced in 2023 with California Representatives Carbajal, Jim Costa (D-CA-21), and David Valadao (R-CA-22) leading in the House and U.S. Senators Dianne Feinstein and Alex Padilla leading in the Senate.
The bill was approved by the House Natural Resources Committee unanimously in September 2024.
Source: United States House of Representatives – Representative Ami Bera (D-CA)
Washington, D.C., May 13, 2025
Today, U.S. Representative Ami Bera, M.D. (CA-06) released a statement on the Department of Homeland Security’s (DHS) decision to end deportation protections for Afghans residing in the United States:
“My office has worked tirelessly to bring our Afghan allies to the United States to protect them from persecution from the Taliban.
“These brave men and women stood by our troops in Afghanistan—translating, advising and risking their lives to keep our service members safe. We made a promise to protect them in return.
“Many of these allies have since resettled in Sacramento County, building new lives and contributing to our community.
“It is unconscionable for the Trump Administration to revoke Temporary Protected Status (TPS) and now force many to return to Taliban-controlled Afghanistan, where they could face persecution, imprisonment or even death.”
Source: United States House of Representatives – Congresswoman Becca Balint (VT-AL)
Randolph, VT – On Friday, Rep. Becca Balint (VT-AL) announced the winners of the 2025 Congressional Art Competition. This year, 100 high school students from 12 counties and 28 schools across Vermont sent in artwork for submission to the annual competition. This year’s art show marks the 44th anniversary of the competition that Vermont’s then-Congressman James Jeffords began in 1982.
This year’s winner from Vermont is Xinyi Cassy Pan, a sophomore at Lyndon Institute in Lyndon Center, Vermont. Xinyi’s teacher is Elly Barksdale. Her art will be on display with other 2025 Congressional Art Competition winners in the US Capitol.
“The Congressional Art Competition provides a unique opportunity to bring together young artists to share their work and showcase the talent across our state’s high schools,” said Rep. Balint. “I’m so thankful to represent a state that values and celebrates contributions to the arts and arts education. As a former teacher, as a mom, as a writer, I know how important it is to foster creativity, a love of the arts in our students, and to make it a continued priority in schools.”
“I want to congratulate Xinyi for receiving the Grand Prize for her piece ‘Awakening Through New Eyes’ in this year’s Congressional Art Competition. I’m so impressed by her work, and I look forward to seeing a piece of Vermont every day in the US Capitol,” continued Rep. Balint.
In addition to the Grand Prize Winner, awards were given to the following students:
County Winners:
· Addison County – Lola Rollins “.5”, Vergennes Union High School – Teacher: Anna Macijski
· Bennington County – Willa Seo “Host Father”, Burr and Burton Academy – Teacher: Anharad Llewelyn
· Caledonia County – Jenna Thomas “Papa’s Garden”, Lyndon Institute – Teacher: Elly Barksdale
· Chittenden County – Jacklyn Whittier “Hideaway”, Champlain Valley Union High School – Teacher: Jason Fearon
· Franklin County – Ryah Whitehead “A Moment of Joy”, Enosburg Falls High School – Teacher: Sabrina Bolduc
· Lamoille County – Adam Lewis “Hat Day”, Stowe High School – Teacher: Carleen Zimbalatti
· Orange County – Caroline Watts “Sick Day”, Thetford Academy – Teacher: Karyn Neubauer
· Orleans County – Morgan Breitenbach “Flower Garden”, Lake Region Union High School – Teacher: Stephanie Harper
· Rutland County: Carmen Decato “Fighting for Survival”, Stafford Technical Center – Teacher: Karen Kysar
· Washington County: Knives Dryfoos “Just Dance”, U-32 High School – Teacher: Kristine Chartrand
· Windham County: Jada Wood “Cards”, Leland and Gray Union High School – Teacher: Emily Mulcrone
· Windsor County: Jonah Libens-Mavodones “Lost in Those Deceptively Small Keys”, Hartford High School – Teacher: Patrick Kelly
Thematic Winner:
· Eva Fewell “Little Moments”, Champlain Valley Union High School – Teacher: Jason Fearon
People’s Choice Winner:
· Clark Clark “A Spot at the Table”, Champlain Valley Union High School – Teacher: Emily McLean
Judge’s Choice Winners:
· Nikolai Stonorov “Raw Hemmed”, Montpelier High School – Teacher: Colleen Flanagan
· Sage Wyndorf “I Spotted-Touch-Me-Not!”, Burlington Technical Center – Teacher: Ashley Stagner
· Clark Clark “A Spot at the Table”, Champlain Valley Union High School – Teacher: Emily McLean
To see a gallery of the student artwork, please visit: https://balint.house.gov/services/submit-artwork.htm
Photos attached of Xinyi Cassy Pan and Congresswoman Balint and of her artwork. Courtesy of the Office of Rep. Becca Balint.
Source: United States House of Representatives – Wyoming Congresswoman Harriet Hageman
Washington, D.C. – Today, Congresswoman Hageman’s Expedited Appeals Review Act (EARA) passed the House of Representatives. The bill will provide those individuals and businesses appealing before the Department of the Interior’s Board of Land Appeals (IBLA) the opportunity to file for an expedited review so they can quickly go to court in front of a neutral arbiter.
Under current law, challengers of an agency decision within the Department of Interior (DOI), must appeal to the IBLA, an administrative court that is also housed within the DOI itself. The use of administrative courts poses a variety of constitutional issues, including in relation to the separation of powers, as the agencies who adopt the regulations then pursue enforcement of them through their own in-house court system, such as the IBLA. This system tips the scale in favor of the agency who enjoy outsized success before their own courts, with the DOI winning 98% of the challenges that are filed before the IBLA and decided on the merits.
“After spending three decades practicing law and witnessing cases argued before agency-appointed judges on numerous occasions, and then being forced to wait as the IBLA delayed issuing a decision, it is fulfilling to see this bill to move forward,” Hageman stated. “The government works for the people, not the other way around. The EARA creates an alternative path for expedited review, allowing stakeholders to request an accelerated decision of their appeals within six months of the request. It gives parties the opportunity to expedite the process and pursue an impartial route in circumstances where the IBLA is failing to timely address matters under its review.”
House Natural Resource Committee Chairman Bruce Westerman (AR-04) said in support of the bill, “As of today, there are more than 650 backlogged appeals before the Interior Board of Land Appeals, some a decade old. Ms. Hageman’s bill will revive the process and ensure appellants get their day in court by requiring the board to issue final decisions in a timely manner. I thank her for her work on this bill.”
The Expedited Appeals Review Act ensures that if IBLA fails to make a decision within 18 months of the appeal being filed, the applicant can demand an expedited review. The IBLA then has six months to resolve the case. Failure to do so allows for the non-agency party to proceed to an Article III district court where they will be granted the opportunity to conduct discovery and develop the administrative record.
Background:
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Source: United States House of Representatives – Wyoming Congresswoman Harriet Hageman
Washington, DC – Congresswoman Harriet Hageman’s bill requiring the Bureau of Reclamation and Western Area Power Administration (WAPA) to analyze the economic consequences that bypass flows at Glen Canyon Dam have had on the Upper Colorado River Basin Fund, passed the House of Representatives earlier today.
Representative Hageman stated, “Our water and energy-producing infrastructure must be protected. America needs more hydropower, not less of it. Reducing hydropower generation is counterintuitive and my bill addresses that by keeping the Basin Fund intact as a short-term means ensuring operating, maintenance and other expenses are paid so that this dispatchable and reliable energy source remains viable for everyone dependent on this supply.”
Background:
The Biden-Harris Administration’s Colorado River Long Term Experimental Management Plan SEIS Record of Decision (ROD) was signed on July 5, 2024, with Reclamation implementation beginning just three days later, on July 8. The ROD calls for bypass flows at Glen Canyon Dam, meaning higher flows to combat the presence of predatory smallmouth bass that threaten the federally protected humpback chub. These higher flows bypass hydropower generators in order to cool the river temperature below the dam to attempt to disrupt smallmouth bass downstream.
The lost hydropower generation must be replaced with power purchased on the open market at more expensive prices during the middle of summer peak electricity demand. The WAPA makes these purchases from the Upper Colorado River Basin Fund, which is financed by power revenues; or, in other words, it is customer funded.
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Source: US Congressman Chris Deluzio (PA)
CARNEGIE, PA — Today, Congressman Chris Deluzio (PA-17) released the following statement in response to news that dozens of National Institute of Occupational Safety and Health workers in Allegheny County that were fired by the Trump Administration would be reinstated.
His statement reads:
“In early April, my team and I learned that the Trump Administration was firing around 200 workers at the National Occupational Safety and Health (NIOSH) facility in Allegheny County.
“We jumped into action, working with Congressional colleagues and calling on the White House to reverse these firings that would have hurt workplace safety.
“Today, we received some good news: some of these firings are reversed. Soon, dozens of respirator certification workers at our local NIOSH facility get their jobs back and return to their important safety work.
“We still need to get the folks on the NIOSH mining research team saved from planned firings, but this is an important public safety win. I will keep up the fight.”
Congressman Deluzio previously sent a letter pushing the Trump Admin HHS to reverse the firings.
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Source: United States Attorneys General
Since the inauguration of President Trump, the Department of Justice is playing a critical role in Operation Take back America, a nationwide initiative to repel the invasion of illegal immigration, achieve total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
Last week, the U.S. Attorneys for Arizona, Central California, Southern California, New Mexico, Southern Texas, and Western Texas charged more than 1400 defendants with Criminal violations of U.S. immigration laws.
The Southern District of California filed 176 border-related cases this week, including charges of assault on a federal officer, bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances. These included Two complaints which charged five people with participating in a human smuggling event that led to the deaths of at least three migrants, including a 14-year-old boy from India. His 10-year-old sister is still missing at sea and presumed dead; their father is in a coma and mother is also hospitalized.
The Central District of California filed criminal charges against 34 defendants this week who allegedly were found in the U.S. following removal. Many of the defendants charged were previously convicted of felonies before they were removed from the United States.
The District of New Mexico charged approximately 300 defendants with border-related crimes, including 91 defendants charged with Illegal Reentry After Deportation (8 U.S.C. 1326). In addition, 209 individuals charged with Illegal Entry (8 U.S.C. 1325) were also charged with violation of a military security regulation (50 U.S.C. 797) because they unlawfully entered the National Defense Area in New Mexico.
The Southern District of Texas filed a total of 300 cases, charging 302 people from May 2-8 in continuing efforts to secure the southern border. As part of the cases, 93 face allegations of illegally reentering the country. The majority have prior felony convictions for narcotics, prior immigration crimes and more. A total of 193 people face charges of illegally entering the country, while 11 cases allege various instances of human smuggling with the remainder involving other immigration-related crimes.
The Western District of Texas filed 316 new immigration and immigration-related criminal cases from May 2 through May 8. Among the new cases, Cirilo Delgado-Alderete, Dilan Karim Valenzuela-Baca, and Antelmo Eligio Ramirez-Bernardo were arrested at an alleged stash house in Anthony, New Mexico. According to an affidavit, U.S. Border Patrol and Homeland Security Investigations agents observed three vehicles that had been identified as being used to smuggle illegal aliens to Albuquerque, New Mexico, parked at the residence. When agents questioned Ramirez-Bernardo, a Guatemalan national, they allegedly discovered he possessed a key to the residence on his keychain. Agents then located 25 individuals inside the residence who admitted to being citizens of Mexico, Peru, Honduras, Guatemala, Dominican Republic, and Pakistan without documentation to be in the U.S. Two of the individuals, Delgado-Alderete and Valenzuela-Baca, were identified as alleged stash house caretakes and drivers to harbor and transport the illegal aliens. Delgado-Alderete, Valenzuela-Baca, and Ramirez-Bernardo are charged with one count of conspiracy to transport illegal aliens and one count of conspiracy to harbor illegal aliens. The drivers allegedly picked up aliens in El Paso before transporting them to New Mexico.
The District of Arizona brought immigration-related criminal charges against 314 defendants. Specifically, the United States filed 117 cases in which aliens illegally re-entered the United States, and the United States also charged 166 aliens for illegally entering the United States. In its ongoing effort to deter unlawful immigration, the United States filed 25 cases against 31 individuals responsible for smuggling illegal aliens into and within the District of Arizona.
We are grateful for the hard work of our border prosecutors in bringing these cases and helping to make our border safe again.
Source: US State of North Dakota
A federal jury in the District of Delaware convicted Clifton H. Gibbs, 68, of Sussex County today on multiple counts of sex trafficking and forced labor. Specifically, the jury convicted Gibbs of seven counts of sex trafficking seven adult victims, five counts of forced labor, and one count of interstate transportation for purposes of prostitution.
According to the evidence at trial, Gibbs exploited the victims’ heroin addiction and fears of withdrawal sickness to compel the victims to engage in commercial sex, panhandle, perform demanding manual labor on his property, and to steal goods for him to resell. Gibbs’ co-defendant, Brooke Waters, 46, previously pled guilty to sex trafficking, forced labor, and interstate transportation for purposes of prostitution charges.
“Today’s conviction vindicates the rights of multiple victims who the defendant trafficked over several years within the District of Delaware,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This defendant preyed on individuals suffering from opiate addiction and cruelly exploited them for his own profit. The Justice Department is committed to aggressively fighting human trafficking and seeking justice for its victims.”
“I hope that today’s verdict brings some measure of closure for the victims in this case,” said Acting U.S. Attorney Shannon T. Hanson for the District of Delaware. “I commend the victims’ bravery and willingness to testify to bring this defendant to justice. Our communities are much safer, and this verdict should serve as a warning to other individuals who exploit victims for personal gain.”
“The conviction of Clifton H. Gibbs highlights the strong partnership between Homeland Security Investigations and the Department of Justice in the fight against human trafficking,” said Special Agent in Charge Edward V. Owens of HSI Philadelphia. “Gibbs preyed on vulnerable individuals, feeding their addiction for profit through forced labor and commercial sex. HSI remains committed to working alongside our federal partners to dismantle trafficking networks, bring perpetrators to justice, and through our victim centered approach, support victims as they reclaim their lives.”
“The crimes uncovered in this case are among the most egregious that Homeland Security Investigations encounters,” said Special Agent in Charge Michael McCarthy of HSI Maryland. “Exploiting vulnerable individuals through coercion, abuse, and manipulation is nothing short of reprehensible. This kind of predatory behavior destroys lives and undermines the fundamental values of human dignity and freedom. HSI remains unwavering in its mission to dismantle criminal networks, bring perpetrators to justice, and protect the safety and well-being of our communities, especially those who are unable to protect themselves.”
The evidence presented at the seven-day trial demonstrated that Gibbs sought out individuals, often young women, who were addicted to heroin, and without any money or a stable place to live, promising to take care of them by giving them housing, food, clothing, and easy access to drugs. He then provided many of them with heroin for free to ease their withdrawal sickness. He allowed them to live in trailers or campers on his two rural properties in Sussex County. He then instructed the women to engage in commercial sex, instructing his co-defendant to take photos of them and post online advertisements for them to do “dates” with commercial sex buyers. Gibbs kept all the proceeds from the commercial sex acts and provided the women with small amounts of heroin and cocaine to avoid withdrawal sickness. Gibbs positioned himself to control the victims’ access to heroin and thereby controlled the onset of withdrawal sickness. Exploiting the victims’ fear of withdrawal sickness, Gibbs profited from the commercial sex acts in which he compelled the women to engage. Gibbs and his co-defendant also recruited heroin-addicted individuals to “boost” or steal goods for him to re-sell, panhandle, and do manual labor on his properties. In the same way he did with the young women he compelled to engage in commercial sex, Gibbs exploited the victims’ fear of withdrawal sickness to coerce this labor for his profit.
Gibbs also used physical force with some of his victims by hitting, kicking, or threatening to shoot those who disobeyed his orders or talked back.
A sentencing hearing will be scheduled at a later date. Gibbs faces a minimum penalty of 15 years in prison and a maximum penalty of life in prison as well as mandatory restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations investigated the case. Assistant United States Attorney Briana Knox for the District of Delaware and Trial Attorneys Christina Randall-James and Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Source: US State of California
A New Hampshire doctor pleaded guilty today to unlawfully distributing a controlled substance. This is the first conviction of a doctor in the District of New Hampshire from a joint investigation by the New England Strike Force and the U.S. Attorney’s Office.
According to court documents, Robert G. Soucy Jr., D.O., 72, of Columbia, New Hampshire, illegally prescribed opioids from his home in Columbia, New Hampshire. Dr. Soucy knew that pharmacies in and around Colebrook, New Hampshire, would not fill his prescriptions for several of his patients. To have the unlawful prescriptions filled, Dr. Soucy specifically instructed a patient to bring his prescriptions to a pharmacy in another location. Dr. Soucy also continued to prescribe opioids to the patient, who the defendant knew had a substance-abuse disorder, without conducting any medical evaluation or testing and after the patient had moved out of New England.
Dr. Soucy faces a maximum penalty of 20 years in prison. He surrendered his DEA registration and is no longer authorized to prescribe controlled substances.
Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, Acting United States Attorney Jay McCormack for the District of New Hampshire, Acting Special Agent in Charge Stephen Belleau and Acting Diversion Program Manager George Lutz of the Drug Enforcement Administration (DEA) New England Division, and Deputy Inspector General for Investigations Christian J. Schrank of the Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The DEA and HHS-OIG investigated the case.
Trial Attorneys Thomas D. Campbell and Danielle H. Sakowski of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Anyone needing access to opioid treatment services can contact HHS-OIG’s Substance Abuse and Mental Health Services Administration 24/7 National Helpline for referrals to treatment services at 1-800-662-4359.
Source: US State of New York
overnor Kathy Hochul, City of Buffalo Mayor Christopher P. Scanlon and members of the 5/14 Memorial Commission announced a major milestone for the permanent and living memorial to honor the lives taken and those impacted by the racially motivated mass shooting at Tops on Jefferson Avenue on May 14, 2022. The 5/14 Memorial Commission identified 18 city-owned and privately-owned lots required for the construction of a permanent memorial. The City’s discussions with private property owners have successfully concluded, with three owners willing to donate or sell the remaining four parcels needed for the memorial. As a result, all 18 lots required for the memorial have now been designated for a unified site, and the acquisition of all parcels marks a critical step forward for the 5/14 Memorial Foundation Inc. to enter detailed phases of design, engineering, permitting, and fundraising.
“The 5/14 Memorial will stand not only as a tribute to the lives lost and forever changed on May 14, 2022, but also as a powerful symbol of resilience, remembrance, and justice,” Governor Hochul said. “Today marks a profound and pivotal moment in our shared journey toward healing the pain caused on that tragic day and ensuring the legacy of those lost endures for generations to come.”
Buffalo Mayor Christopher P. Scanlon said, “As we approach three years since the horrific racially motivated attack on May 14th, today’s announcement isn’t just about transferring property — it’s about the next step creating a permanent and living space that reflects the strength of the East Side community and ensures that the lives we lost are never forgotten. I want to thank Governor Hochul, the 5/14 Memorial Foundation Inc., the Buffalo Common Council, and all stakeholders for coming together to make this possible.”
5/14 Memorial Foundation Inc. Chairman Rev. Mark Blue said, “This moment represents a significant milestone in our collective journey to push forward as a community and honor the lives taken from us on May 14th, 2022. We are deeply grateful to Governor Hochul, Mayor Scanlon, the Common Council, and the members of this community who have worked in partnership with us to achieve site control. This brings us one step closer to creating a permanent space for healing, reflection, and education.”
Buffalo Common Council Majority Leader, Ellicott District Councilmember Leah M. Halton-Pope said, “This moment represents more than a transfer of land — it is a transfer of purpose, of collective will, and of deep resolve to remember those we lost on May 14th and the community that continues to rise in their honor. The establishment of a permanent and living memorial affirms that Black lives matter, that the East Side of Buffalo matters, and that the legacy of those ten beautiful souls will forever be etched not only in stone, but in our city’s conscience. I’m proud to stand with my colleagues, Governor Hochul, Mayor Scanlon, and the 5/14 Memorial Commission as we take this next step forward — grounded in remembrance and committed to healing.”
Today, the Common Council approved the sale of 14 city-owned parcels at the designated memorial site to the 5/14 Memorial Foundation. The City of Buffalo submitted a Designated Developer Agreement, which was approved by the Buffalo Common Council, to establish site control at the corner of Jefferson Avenue and Best Street, the future site for the 5/14 permanent and living memorial. The agreement outlines the sale of city-owned parcels to the 5/14 Memorial Foundation Inc. and sets forth land use conditions and long-term responsibilities for the Foundation to develop and maintain the site as a public memorial space.
About the 5/14 Memorial
The 5/14 Memorial Commission, established in October 2022 by Governor Kathy Hochul and then-Mayor Byron W. Brown, unveiled the final design for the memorial, titled “Seeing Us,” on May 13, 2024. Designed by Jin Young Song and Douglass Alligood, the memorial features ten interconnected stone pillars inscribed with the names of the lives taken and survivors, each with a unique arc and height. A sweeping support building will serve as a central hub for education, exhibitions, community activities, and events, with an elevated Memorial Walk on its roof. The design was selected through a comprehensive public engagement process, including community meetings and surveys.
The estimated cost for the memorial is approximately $15 million. To date, New York State has committed $5 million, and the City of Buffalo has pledged $1 million toward the project. The 5/14 Memorial Commission has designated the newly created 5/14 Memorial Foundation to initiate a yearlong fundraising campaign to secure the remaining funds necessary to commence construction.
Representative Tim Kennedy said, “Our community was permanently scarred by the events of May 14, 2022. While that pain will never go away, the new permanent site for this memorial will create a place of comfort and healing where Western New Yorkers can come together in love and unity. I thank the members of the 5/14 Memorial Commission, Mayor Scanlon, and the Common Council for their collaborative work to identify and secure this site. The City of Good Neighbors will respond to hatred and violence with hope and unity.”
Assembly Majority Leader Crystal Peoples-Stokes said, “The acquisition of land is another positive step towards creating a lasting memorial honoring the lives lost, the lives forever changed, and the community that stood together in the face of anti-Black racism. We have more hills to climb and we will climb them. I want to thank Governor Kathy Hochul, City of Buffalo Mayor Christopher Scanlon, the City of Buffalo Common Council, community leaders and the 5/14 Memorial Foundation, Inc for helping to bring the memorial one step closer to reality.”
State Senator April N.M. Baskin said, “May 14, 2022, is a tragic day that will live in infamy throughout Buffalo, Western New York, and beyond. We lovingly remember our 10 neighbors who were senselessly murdered that day as well as the individuals injured and those who face irreversible trauma from the attack on our community. As we work on many initiatives to improve the societal conditions that made East Buffalo a vulnerable target on 5/14, I am pleased that we are making strides to establish a tangible Memorial that will stand as a timeless symbol of that fateful day.”
State Senator Sean Ryan said, “Three years after the racist attack on 5/14, the memories of that horrible day are still fresh in all of our minds. The anger, sorrow, and grief we felt that day are still inside, but we have begun to build our lives around them. This memorial will be a solemn tribute to the friends, loved ones, and neighbors lost that day, celebrating them and memorializing them for all time. It will also serve as a reminder of our community’s resilience in the wake of tragedy. Thank you to Governor Hochul and our partners in government who have worked together to make this tribute possible.”
Buffalo Common Council President Bryan Bollman said, “The land transfer for the 5/14 Memorial marks a vital step forward in honoring the 10 lives lost, the families forever changed, and the community that continues to heal. We will never forget the pain of that day, but we move forward with purpose, committed to remembrance, justice, and unity. I commend Governor Hochul, Mayor Scanlon, former Mayor Brown, and the 5/14 Memorial Commission for their leadership in ensuring this sacred space will stand as a permanent reminder that love will always triumph over hate.”
Masten District Council Woman and 5/14 Commission Member Zeneta B. Everhart said, “It has been an honor to serve on the 5/14 Memorial Commission and Foundation for nearly three years. As we approach the 3rd memorial anniversary I am reminded of the 10 lives stolen from us, the survivors including my son Zaire Goodman, and the dozens of residents impacted by the hate fueled massacre on 5/14/2022. I want to thank the Mayor and my colleagues on the Council for making the process for acquiring these properties seamless so that we can begin building an honor space in remembrance of 5/14. I would also like to thank the donors who selflessly gave their properties and those who were so willing to sell their properties so that we could make this memorial a reality. This memorial will be a living breathing entity that will not only teach the community about the horrific events of 5/14, but it will be a space that teaches the history of African Americans for generations to come.”